Seán Fleming (Laois, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

553. To ask the Minister for Social Protection the details regarding the pro rata contributory pension and the requirements to meet such a pension; and if he will make a statement on the matter. [10442/16]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The State pension contributory 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. To ensure that the individual can maximise their entitlement to a State pension, all contributions paid over their working life from when they first enter insurable employment until pension age are taken into account when assessing their entitlement and the level of that entitlement.

To qualify for a state pension (contributory) a person must have at least 520 paid contributions and satisfy a yearly average condition (a yearly average of 48 contributions paid or credited is required for a full rate State pension (contributory), and reduced rates of payment may be payable for pensioners with lower averages). Once over 16 years of age, the date a person enters into insurable employment is the date used for averaging purposes.

There is no single Pro Rata Contributory Pension. However there are arrangements which operate on such a basis. A mixed insurance pro-rata State pension is one of a number of alternative qualifying methods introduced to ensure that as many people as possible qualify for a State pension contributory. This was introduced in 1991 and was designed to ensure that people who have contributed to the social insurance system at different rates receive a pension which reflects the proportion of full rate contributions which exists in their overall insurance record. This pension is calculated by taking the total number of contributions (modified and full rate) a person has paid over their working life and applying the average contributions test to arrive at the rate which would be paid if all contributions were at the full rate. The actual rate to be paid is determined by the proportion of full rate contributions in the overall record. There are also pro-rata arrangements which may apply when calculating pensions due under international social security agreements. The requirements to qualify for such pensions may depend upon the circumstances of the person and their insurance record in Ireland and abroad.

For those with insufficient contributions to meet the requirements for a State pension (contributory), they may qualify for a means tested State pension (non-contributory), the maximum personal rate for which is €222.