Bernard Durkan (Kildare North, Fine Gael)
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469. To ask the Minister for Employment Affairs and Social Protection the extent to which self-employed or other contributions in respect of State pension applications to her Department have been refused on the grounds of an insufficiency of contributions in each of the past five years to date; if any consideration has been given to the awarding of pensions in such cases on a pro-rata basis, in line with their actual level of contributions; and if she will make a statement on the matter. [59543/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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There are a number of payments and pensions paid by my Department to people over State Pension Age. One of these is the State Pension (Contributory), qualification for which is based on a number of criteria, including that of a minimum of 520 qualifying contributions, which have been paid into the Social Insurance Fund. For those who have paid the required contributions at a reckonable rate – including Class S (self-employed) - these will be used in the calculation of their entitlements.

As the actuarial value of the State Pension is currently estimated at approximately €380,000, I believe it is reasonable to require people claiming a contributory pension to have made at least 10 years of paid contributions over the term of their working life, before qualifying for a payment.

From the Department's records, which include all applications for State Pension (Contributory) in the given year, the following number of people had less than 520 contributions from 2017 to date.

Where a person aged 66 or over does not satisfy the conditions to qualify for a SPC or qualifies for less than the maximum rate, they may instead qualify for one of the following:

- The means-tested State Pension (Non-Contributory) (SPNC) which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the SPC; or

- An increase for a qualified adult (based on their own means), amounting up to 90% of a full rate SPC pension where their spouse has a contributory pension; or

- Where their spouse/civil partner is deceased, a widow's/widower's/civil partner's contributory pension, which they may claim either based on their spouse's or their own social insurance record. The qualifying conditions for this require fewer contributions paid (260) than the SPC and the current maximum personal rate for those aged 66 or over is €253.30, i.e. the same as the maximum rate of the SPC, with allowances (notably the Living Alone Allowance) payable where applicable.

Where contributors enter insurable employment, either as employees or self-employed, after they have attained the age of 56 and have no entitlement to the SPC or SPNC, then the pension element of the contributions paid by both employed and self-employed contributors may be refunded.

In September, I announced a series of landmark reforms to the State Pension system in response to the recommendations from the Pensions Commission. The set of measures represent the biggest ever structural reform of the Irish State Pension system.

One of the key measures is the introduction of a flexible pension system in Ireland. Under this new system, from January 2024, people will still be able to retire at 66 and draw-down their pension in exactly the same way as they can today. In addition, there will be new flexibility so that people can choose to defer their pension, work longer and receive a higher pension payment.

The flexible State Pension system is about providing people with choice. People will decide for themselves what best suits their needs and circumstances. For example, in the case of a person who reaches age 66 and does not have sufficient contributions to qualify for a full pension, they will now have the option to work for longer to build up additional entitlements. If a person has less than 10 years PRSI reckonable paid contributions, they can use this period to establish entitlement. A person will also have the option to continue working between age 66 and 70 and receive an actuarially based increase in their weekly payment rate.

I hope this clarifies the matter for the Deputy.

Bernard Durkan (Kildare North, Fine Gael)
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470. To ask the Minister for Employment Affairs and Social Protection the total number of pension applications for the contributory-related State pension received in each of the past three years to date; the number granted, refused and or pending; and if she will make a statement on the matter. [59544/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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State Pension (Contributory) (SPC) is a payment which a person may qualify for at 66 years of age if they have enough Irish social insurance contributions. It is based on their social insurance (PRSI) contributions. It is not means tested, nor is it affected by other income.

The number of applications registered, awarded, refused and pending each in each of the last three years is shown in the table below.

Table 1: The number of SPC claims registered, awarded, refused and pending, by year.

Bernard Durkan (Kildare North, Fine Gael)
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471. To ask the Minister for Employment Affairs and Social Protection the number of situations in respect of which applications for the State Pension (Contributory) were refused during the past five years to date due to insufficiency of contributions; and if she will make a statement on the matter. [59545/22]

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).

Calculation of an applicant’s entitlement to State pension (contributory) is based on their social insurance record from their date of entry into insurable employment until pension age, currently 66 years. Pension entitlement depends on factors such as a person’s social insurance record, their attachment to the workforce, and their countries of employment.

Depending on an applicant’s individual social insurance history, their entitlement is assessed under a number of different tests to determine if they qualify for a pension. Where an applicant satisfies the criteria under more than one of these entitlement tests, the most financially beneficial rate of pension will ultimately be awarded.

Below are the number of State pension (contributory) claims disallowed in each of the past five years and which remain disallowed. These figures do not include applicants who have since died. The 2022 statistics may include cases where entitlement is still being assessed using their foreign employment records.

For those who do not qualify for the State pension (contributory), there are other payments available, depending on an individual’s circumstances. State pension (non-contributory) is a 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).

If a person’s spouse has a State pension (contributory), the person may qualify for an Increase for qualified adult (IQA) payable with their spouse’s pension (means-tested on their own means). The rate of IQA payable may amount to 90% of the maximum State pension (contributory), depending on the rate of State pension (contributory) in payment to the person’s spouse and the person’s own means, solely or jointly held.

I hope this clarifies the position for the Deputy.