Terence Flanagan (Dublin North East, Renua Ireland)
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92. To ask the Tánaiste and Minister for Social Protection if she will address a matter (details supplied) regarding pension contributions; and if she will make a statement on the matter. [44868/15]

Joan Burton (Dublin West, Labour)
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The State pension is a very valuable benefit and is the bedrock of the Irish pension system. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. State pensions account for the single largest block of social welfare expenditure, and while expenditure on pensions is increasing because of demographic pressures, this is being successfully managed within the overall welfare budget. This year (2015), the Department will spend an estimated €6.675 billion on pensions – 34.4% of all welfare expenditure and an increase of €168 million over 2014. The overall concern of the Government in recent budgets has been to protect the primary weekly social welfare rates where possible. Maintaining the rate of the State pension and other core payments is critical in protecting people from poverty.

A number of changes have been made to the State Pension (Contributory) in the context of State pension reform, to provide for sustainable pensions in the future. “Developing the National pensions System – Final Report of the National Pensions Board” published in 1993, recommended that the number of paid contributions required to qualify for a contributory pension should be increased to 520 (10 years) contributions. The necessary legislation to effect these recommendations was contained in Section 12 of the Social Welfare Act 1997 (now incorporated in the Social Welfare Consolidated Act 2005) which provided for the implementation of the change in two stages, with the paid contribution requirement being standardised at 260 from 2002, rising to 520 from April 2012.

Social welfare supports will continue to be available to those who need it most and where a person fails to meet the qualifying conditions of an insurance based scheme, a means tested assistance payment may be available provided they satisfy the qualifying conditions, such as the State Pension (Non-Contributory), the maximum rate of which is 95% of the maximum rate of the State Pension (Contributory).