Written answers

Tuesday, 19 May 2009

Department of Social and Family Affairs

Social Welfare Code

12:00 pm

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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Question 321: To ask the Minister for Social and Family Affairs the population over 65 years of age entitled to the full old age contributory pension; a reduced rate old age contributory pension; the old age non-contributory pension and none of the previous; and if she will make a statement on the matter. [19617/09]

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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Question 322: To ask the Minister for Social and Family Affairs the estimated additional cost in 2009 of giving all residents aged over 65 years an entitlement to the current full old age contributory pension; and if she will make a statement on the matter. [19618/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 321 and 322 together.

In order to qualify for the maximum rate of the state pension (contributory), a person must, amongst other qualifying conditions, achieve a yearly average of at least 48 contributions paid or credited on his/her social insurance record. Reduced pensions are paid to those with yearly averages as low as 10 contributions and arrangements are also in place for the payment of pro-rata pensions to those with mixed rate insurance records or contributions from other EU member states or countries with which Ireland has a reciprocal agreement. The state pension (non contributory) is paid to those who do no t have the requisite number of social insurance contributions for a state pension (contributory) and is subject to a means test.

The current rate of payment for the maximum state pension (contributory) is €230.30 per week. Estimates provided for the Green Paper on Pensions in 2007 suggested that the full-year cost of providing a standard rate pension for all citizens over 66 years of age at the then maximum rate of €209.30 per week was €1.2 billion. Up-rating this figure provides an estimated total cost of €1.3 billion for 2009. This estimate does not take account of the cost of exporting payment to former residents.

The numbers of people in receipt of full and reduced rate state pensions are as follows:

Pension TypeFull RateRecipientsReduced RateRecipientsTotalRecipientsIncrease for (age 66 and over) Qualified Adult
State Pension (Contributory)132,232121,426253,65843,466
State Pension (Transition)4,1123,7807,892274
State Pension(Non-Contributory)74,32223,47097,792260
Widow(er)'s Contributory Pension (aged 66 and over)66,79330,12196,914n/a

There are approximately 47,000 people aged 66 and over in the State not receiving a social welfare pension from my Department. These are mainly former public servants in receipt of a public service pension or self-employed people with private or occupational pension cover who did not make sufficient social insurance contributions.

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