Alan Dillon (Mayo, Fine Gael)
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316. To ask the Minister for Employment Affairs and Social Protection if consideration will be given to extending the total contributions approach for calculating the State pension (contributory) to those who have not accumulated PRSI contributions (details supplied); and if she will make a statement on the matter. [49169/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Under current eligibility conditions, applicants must have 520 full-rate paid contributions in order to qualify for standard State pension (contributory). This equates to 10 years of full-rate insurable employment over a person’s working life. It should be noted that having a minimum of 520 full-rate contributions does not automatically entitle an applicant to the maximum rate of State pension (contributory). It is the qualifying threshold that must be satisfied so that an applicant’s pension entitlement can be calculated, based on their individual circumstances.

The interim Total Contributions Approach introduced in January 2018 did not alter the qualifying conditions for State pension (contributory) set out in social welfare legislation.

Individual pension entitlement depends on factors such as a person’s social insurance record, their attachment to the workforce and their countries of employment. It is advisable that all contributors maintain their social insurance record as fully as possible over their working life. They may also have the option of applying to be a voluntary contributor.

Under European Union regulations, the insurance records of other Member States can be combined with an applicant’s Irish contribution record to determine entitlement to a proportional or pro rata pension.

For those who do not qualify for the State Pension (contributory), or qualify for a reduced rate of pension, the State pension (non-contributory) is an alternative means-tested, residency-based payment for persons of pension age. The maximum rate payable equates to 95% of the maximum rate of State pension (contributory).

I hope this clarifies the position for the Deputy.