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Dáil Éireann debate -
Tuesday, 7 Apr 1987

Vol. 371 No. 8

Written Answers. - Old Age Contributory Pension Entitlement.

99.

asked the Minister for Social Welfare if he is aware of an anomaly in the social welfare legislation whereby a number of people do not qualify for old age contributory pensions because of a change in legislation governing compulsory insurance introduced in 1953 which continued until 1974, as a result of which people do not qualify for old age contributory pensions because the 1953 legislation provided that people receiving a certain salary were not eligible to pay social insurance, and were unaware of their right to become voluntary contributors until it became too late; and if he will rectify the situation as has been recommended on two occasions by the Ombudsman.

One of the conditions for entitlement to old age contributory pension is that a person must have a yearly average of at least 20 contributions since 5 January 1953 or his entry into insurance, if later.

The issue raised by the Ombudsman related to the fact that non-manual workers were prior to 1974, not compulsorily insurable whenever their income went over a certain limit. This meant that such workers could have gaps in their insurance record unless they became voluntary contributors. In some cases the gaps were such that persons did not have sufficient contributions to qualify for old age contributory pension.

The income limit was abolished in 1974 and since that time all employed workers are compulsorily insured.

The issue raised by the Ombudsman was specifically examined in the report of the Commission on Social Welfare which made proposals for dealing with the problem. I am reviewing this matter in the context of my overall consideration of the commission's recommendations.

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