Written answers
Tuesday, 24 June 2008
Department of Social and Family Affairs
Social Welfare Code
10:00 pm
Brian O'Shea (Waterford, Labour)
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Question 254: To ask the Minister for Social and Family Affairs the proposals she has to amend legislation in order that applicants for State contributory pension can have social welfare contributions arising from student employment discounted when assessing the contributions average where subsequent insurable employment did not commence for a long period afterwards; and if she will make a statement on the matter. [24688/08]
Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The average contributions test has been a key qualifying condition for contributory pensions since the scheme was introduced in 1961. A person's contribution record is averaged from the first day they enter social insurance until they reach retirement age. A contributory pension is a very valuable benefit and the objective of the average contributions test is, to ensure amongst other things, that those qualifying have made a sustained contribution to the social insurance fund over their working lives.
Issues have been raised in relation to the operation of the average contributions test in the context of the consultation process on the Pensions Green Paper. A number of groups, including older women returning to employment after many years caring for family, people returning from abroad and those in the situation referred to by the Deputy, have complained about the impact large gaps in a persons insurance record can have on their pension entitlements. The Green Paper consultation process was recently completed. The Government is committed to finalising, by the end of the year, a framework to address the pension's agenda over the long-term. The operation of the average contribution test will be considered in that context.
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