Written answers

Thursday, 8 July 2010

Department of Social and Family Affairs

Pension Provisions

10:00 pm

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 452: To ask the Minister for Social Protection the number of women in receipt of pensions as dependants of their spouse; and if he will make a statement on the matter. [31015/10]

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 453: To ask the Minister for Social Protection the number of persons in receipt of the State contributory pension in 2009; the number of persons who qualified for the full pension; the number of persons who received a reduced rate payment; the number and the percentage of those receiving a reduced rate State contributory pension that were receiving less than €150 per week in 2009; the number and the percentage that received less than €100 per week in 2009; and the number and the percentage that received less than €60 per week in 2009; and if he will make a statement on the matter. [31016/10]

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 454: To ask the Minister for Social Protection if he will provide a gender breakdown of those in receipt of State contributory pension, separating those who received full pension and reduced rate pension; the percentage of those receiving a reduced rate State contributory pension in 2009 that were women; and if he will make a statement on the matter. [31017/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I propose to take Questions Nos. 452 to 454, inclusive, together.

The social insurance system is one which delivers benefits to those who pay into it, similar to any insurance-type system and is based on the principle of equity of treatment: those who contribute more, receive more.

At present, in addition to satisfying the yearly average contribution test, people must have 260 paid contributions in order to qualify for State pension. As part of the pension reforms in the National Pensions Framework, the requirement for 260 total paid contributions will increase to a requirement to have 520 paid contributions from April 2012.

In 2020, the introduction of the total contributions approach will require that people have 30 years of contributions/credits (10 years of which can be credits) before qualifying for a maximum pension. The 30 years can be calculated across a customer's full working life. Under the total contributions approach, allowing for the ten years of credits, a person will qualify for a two-thirds pension (66%) if they have the minimum number of paid contributions (10 years) and the maximum number of credits (10 years).

The means-tested State pension (non-contributory) will continue to be there for people on low incomes who have not paid sufficient PRSI contributions to qualify for the contributory pension.

The current and the proposed new system strikes a balance between recognising periods outside the paid workforce while emphasising the need to maximise the paid element in the contribution conditions for pensions.

For people reaching State pension age before 2020, a person's social insurance credit record can be used in its entirety for calculating entitlement. In addition, social insurance credits for people who take time out of the workforce for caring duties will be introduced. This will replace the current homemakers disregard and will assist people, including women who do not have sufficient paid contributions, qualify for a contributory pension or a higher level of payment. The statistics in relation to State pension (contributory) and State pension (transition) recipients are set out hereunder.

Table 1 – No. of pensions in payment where an increase for qualified

adult is in payment in respect of a female beneficiary.

State pension (transition)State pension (contributory)
30/12/20092,05662,080
30/06/20101,99662,831

Table 2 – No. of persons in receipt of the State pension (contributory)

in 2009, at full rate, and at reduced rate.

(Figures as at 31st December 2009)

State pension (contributory)Customers
Full Rate137,381
Reduced Rate127,721
Total265,102

Table 3 – The numbers and percentages of State pension (contributory) recipients

in 2009 receiving less than €150/€100/€60 per week, respectively.

(Figures as at 31st December 2009) Rate (€) Customers

<150 and >=10036,174 (14%)
<100 and >=603,257 (1%)
<6022,818 (9%)Tables 4 & 5 – Gender breakdown of State pension (contributory)recipients, by full rate/reduced rate payment category,showing percentage of female recipients by category.GenderFull/Reduced rateCustomersMaleFull Rate100,272 (38%)MaleReduced Rate75,741 (29%)FemaleFull Rate37,109 (14%)FemaleReduced rate51,980 (20%)(Figures as at 31st December 2009)(Figures as at 30th June 2010)GenderFull/Reduced rateCustomersMaleFull Rate102,512 (38%)MaleReduced Rate77,475 (29%)FemaleFull Rate37,997 (14%)FemaleReduced rate54,001 (20%)>

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