Michael Ring (Mayo, Fine Gael)
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Question 578: To ask the Minister for Social and Family Affairs if he will introduce a pension at a reduced rate to those elderly people who contributed PRSI on the expectation of receiving a pension but were denied by reason only of their advanced age; his plans to introduce the recent recommendation by the Human Rights Commission in this regard; and if he will make a statement on the matter. [20077/07]

Martin Cullen (Waterford, Fianna Fail)
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It is a fundamental principle of our social insurance system that those qualifying for benefits must satisfy a range of contribution and other conditions. In the case of contributory pensions this involves commencing payment of contributions 10 years before pension age, payment of a minimum number of contributions at an appropriate rate and reaching a minimum average annual contribution rate. The state pension (contributory) is a valuable benefit and the conditions are designed to ensure that those qualifying have had a sufficient and ongoing attachment to the social insurance system. The case reported on by the Irish Human Rights Commission (IHRC) involves a couple who were over 56 years of age in 1988 when compulsory social insurance for the self-employed was introduced. Accordingly, they were unable to satisfy one of the basic requirements for pension as they did not commence paying insurance 10 years before pension age. In 1999 a special half-rate pension was introduced for this group based on the payment of 260 contributions and, again, the couple involved did not satisfy the qualifying condition. While one of the couple could have qualified had they paid the necessary contributions, because of advanced age the other person would not have been able to contribute the necessary level of contributions before reaching pension age. A refund of part of the social insurance contributions was available to such people.

Having considered the case, the IHRC has recommended that a reduced benefit should be paid to people who, because of advanced age, could not satisfy the conditions for the special pension introduced in 1999. The recommendations of the IHRC are based on its assessment of the situation under the European Convention on Human Rights, the International Covenant on Civil and Political Rights and the European Code of Social Security. In relation to the European Code of Social Security, the IHRC places particular emphasis on provisions in relation to the position of people, who by reason of age when provisions are introduced, cannot satisfy contribution or employment conditions.

The Department makes annual reports on compliance with this Code to the Council of Europe, summarising changes to the social welfare system. These reports are then referred to the International Labour Organisation (ILO) Committee of Experts for their examination. The Department's 1999 report included details of the self-employed provisions which are now the subject of the Irish Human Rights Commission (IHRC) investigation. At that time the ILO Committee confirmed that Ireland met its obligations.

Accordingly, as an initial step in its review of the IHRC report, my Department has asked the ILO Committee of Experts for its views on the way in which the IHRC has interpreted the relevant articles. While the Department has received an informal opinion which is at variance with the conclusions of the IHRC, it has asked the Committee of Experts for a formal review of the situation in the context of our annual report on compliance with the European Code of Social Security which my Department submitted recently. The annual report has drawn specific attention to the IHRC report and the manner in which it interprets our obligations under Article 29.5 of the Code.

The views of the supervising committees have been sought on the conclusions of the IHRC report and as soon as these are received the position will be reviewed. My Department is anxious to finalise this matter and will press for an early response from the supervising committee.