asked the Minister for Social Welfare the cost to the Exchequer to remove the anomaly in the scheme for contributory pension which entitles some people who have made a lesser number of contributions to the old age contributory pension, and denies it to others who have made a greater number of contributions but who find that due to a break in contributions over a number of years the average number of contributions as determined by his Department is not sufficient.
Written Answers. - Old Age Contributory Pension.
139.
Up to 1974 coverage for social insurance purposes was subject to a remuneration limit and non-manual workers were not compulsorily insurable whenever their income went over that limit. When the limit was abolished in 1974 many such people came back into insurance. In a number of cases, the breaks in insurance cover were such that certain persons did not have sufficient contributions to satisfy the yearly average qualifying condition for Old Age Contributory Pension.
The cost of providing old age contributory pension at the minimum current rated this group would be of the order of £45 million over a 30 year period.
The Commission on Social Welfare recommended that people in this category should be paid pro-rata pensions based on their average number of contributions since entering insurance. The cost of the Commission's proposal is estimated at some £23 million over a 30 year period.