Richard Bruton (Dublin North Central, Fine Gael)
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Question 1281: To ask the Minister for Social and Family Affairs if her attention has been drawn to the fact that under social welfare rules persons who were self-employed in 1988 can have their pension eligibility calculated based on the yearly average of contributions calculated since 1988, but persons who entered self-employment after that date do not receive the benefit of this concession; and her views on changing this rule which unfairly excludes some people from pension eligibility such as in a case of a person (details supplied) in Dublin 5. [29658/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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In order to qualify for a state pension contributory a person must satisfy a number of qualifying conditions which include commencing insurable employment at least 10 years before pension age, payment of a minimum of 260 qualifying contributions and achieving a yearly average of at least 10 qualifying contributions, paid or credited, over their working life. To determine the yearly average a person's contribution record is averaged from 1953, or from the year of starting insurable employment, if later, to the end of the tax year before reaching pension age. The person concerned achieved a yearly average of just 6 on her record and, accordingly, her claim was rejected.

Self-employed people become compulsorily insured for social welfare benefits in April 1988. A concession was made to those who commenced paying insurance at that time which allowed any previous social insurance record they may have had to be disregarded when eligibility for pension was being assessed. Self-employed people who commenced paying contributions after April 1988 are treated the same as other contributors. It is accepted that the average contributions test can have an impact on pension entitlements, particularly where a person has a significant gap in their overall record. The issue is discussed in the Green Paper on pensions and the possibility of making reforms to the system will be considered in the development of the framework for future pensions policy which the Government has indicated will be finalised and announced by the end of the year.