Darragh O'Brien (Dublin Fingal, Fianna Fail)
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142. To ask the Minister for Social Protection his views on the possibility of a refund to a person (details supplied) under the state pension (contributory) scheme; and if he will make a statement on the matter. [19981/16]

Leo Varadkar (Dublin West, Fine Gael)
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Section 34 of the Social Welfare Consolidation Act 2005 provides for the return, subject to any conditions, restrictions and deductions specified in the regulations, of any sums paid in error by means of employment, self-employment, voluntary or optional PRSI contributions.

In the case referred to by the Deputy, PRSI contributions were deducted appropriately and consequently there is no basis for a refund.

I hope this clarifies the matter for the Deputy.

Noel Grealish (Galway West, Independent)
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144. To ask the Minister for Social Protection if he will consider providing persons who have completed 40 years social insurance contributions the right to a full state pension (contributory); the cost of such a change; the number of persons likely to qualify for a full pension; the number of persons currently in receipt of a full pension; the number on a reduced pension, by the different rates of reduction in each country; and if he will make a statement on the matter. [19996/16]

Leo Varadkar (Dublin West, Fine Gael)
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There are a number of criteria which must be satisfied in order to qualify for a State pension contributory, whether at full or reduced level. These include that the person must be aged 66 or over and have at least 520 paid contributions, i.e., a minimum of 10 years. Provided a person satisfies all the relevant conditions, they may qualify for a State pension contributory, the minimum personal rate of which is €93.20, and the maximum personal rate of which is €233.30.

The Deputy should note that there is no fixed amount of paid and/or credited contributions required which will qualify a person for a full-rate State pension (contributory). The total amount of contributions a person will require also depends upon the duration over which they made these contributions, as both of these figures are used to calculate a person’s ‘yearly average’ contributions, upon which their rate of entitlement is based. Since the contributory pension was introduced in 1961, the ‘yearly average’ contributions test has been used in calculating the level of pension entitlement, where the total contributions paid or credited are divided by the number of years of the working life (from their entry into insurable employment up to the year prior to their reaching State pension age).

I am informed that, if one breaks down claims based upon their banding, there are currently 225,507 State pension (contributory) claims approved for a pension rate based upon the 100% band, and 140,218 claims for a reduced rate band pension (which includes the 98% rate). It should be noted, however, that the rate of payment for a number of these (including some of those on the 100% band) are reduced for other reasons unrelated to banding, such as pro-rata mixed insurance pensions (where the pensioner has mixed insurance records, having worked in both the public and private sector) and pensions where the pensioner worked both in Ireland and another EU country. These individualised various rates of reduction based on the circumstances of each pensioner mean that it is not practical to provide a breakdown of reduced rates of payment in the manner requested by the Deputy.

The additional cost to the Exchequer for people with a completed 40 year Social insurance contribution record qualifying for a full pension would depend on a number of factors –

- Whether the 40 years of contributions would be paid contributions, or could include credited contributions received when in receipt of another social welfare payment (such credited contributions are used in the calculation of the yearly average).

- Whether such a pension could be claimed before age 66 (i.e. many people would have paid 40 years contributions aged 58-65).

- How soon such pensioners accrued a 40 years contributions record.

- The number of existing workers, currently outside the pension system, who would have 40 years of paid contributions.

- Whether such a pension could be paid to people under current pension age and still working, in addition to their wages

- Additional net costs could potentially include people retiring early and ceasing payment of PRSI and taxes.

Any significant measures that would increase the cost of the State pension would have to be carefully costed and considered in an overall policy and budgetary context.

The Deputy should note where people cannot qualify for a full rate contributory pension as a result of an intermittent PRSI record; the social protection system provides alternative methods of supporting such people in old age. For example, if their spouse has a contributory pension, they may qualify for an Increase for a Qualified Adult amounting up to 90% of a full rate pension, which by default is paid directly to them. Alternatively, they may qualify for a means-tested State pension (non-contributory), amounting up to 95% of the maximum contributory pension rate.

I hope this clarifies the matter for the Deputy.