Seán Connick (Wexford, Fianna Fail)
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Question 315: To ask the Minister for Social and Family Affairs her views on a review of contributory and non-contributory pension schemes for farmers who were not in a position prior to retirement to make sufficient social welfare contributions to allow them to claim a full contributory pension; and if she will make a statement on the matter. [18062/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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It is a fundamental principle of the 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.

In 1999 provision was made to enable people who were over age 56 at the time of the introduction of PRSI for the self-employed in 1988, and who could not therefore meet the standard qualifying conditions, to receive a contributory pension. The pension is paid at half the maximum rate and the person must have paid a minimum of 260 contributions to qualify for it.

The objective of this measure was to provide pensions for people who could not receive payments under standard qualifying conditions, while having due regard to the contributory principle underpinning entitlement to social welfare payments generally.

In 2006 a number of improvements in relation to the means test for the state pension (non-contributory) were introduced. These included an increase in the amount of capital disregarded and an increase in the general means disregard from €7.60 to €20 per week. This general disregard was subsequently increased to €30 with effect from January 2007. The effect of this is that the first €30 per week of all means is not taken into account. Budget 2008 provided for an increase of €12 per week (6%) in the rate of all non-contributory pensions, bringing the weekly rate of pension to €212 per week with effect from January 2008. These measures are of considerable benefit to many thousands of non-contributory pensioners.

Increases in rates and other improvements in pensions over many years have been among the major achievements of the Government. Since 2002, the level of the state pension (non-contributory) has increased by over 58% from €134 to €212. This improvement has had a marked impact on the living standards of older people enabling them to face the future with a greater sense of security and dignity. The Government is determined to maintain and improve on the progress we have made in improving pensioners' incomes. It is committed to achieving a pension of at least €300 per week by 2012.

With regard to pensions generally, the Green Paper on Pensions, which was published in October 2007, includes a discussion on a range of issues affecting social welfare pensions, including the position of people receiving reduced rate payments, or no payment. The Green Paper is at present open for consultation and will remain so until the end of this month. Submissions are welcome on all aspects of the system. Submissions can be made through the Green Paper website ( www.pensionsgreenpaper.ie ), by email: pensionsgreenpaper@welfare.ie, by fax: 01-7043457 or by post. Submissions received are published on the Green Paper website.

The Government is committed to developing the framework for future pensions policy by the end of 2008.