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Dáil Éireann debate -
Thursday, 10 Nov 1988

Vol. 384 No. 1

Written Answers. - Pro Rata Pensions Payment.

75.

asked the Minister for Social Welfare his views on the anomaly which has been created by the failure to extend pro rata pensions to those with mixed insurance; and whether he has any proposals to resolve this problem.

The arrangements made in the Social Welfare Act, 1988 for the payment of pro rata pensions were designed to address an anomaly which affected a specific group of insured persons. These persons had been excluded from compulsory social insurance cover for periods prior to 1974 by reason of the upper earnings limit which then applied. They were brought back into compulsory insurance in 1974, when that limit was abolished but subsequently failed to qualify for contributory pension because of the gaps in their insurance records prior to 1974.

This arrangement does not cover the situation of persons with mixed insurance records that is partly at the full rate and partly at a modified rate who do not qualify for pension because of an insufficient contributions record at the full rate. This is a much wider issue and is an ongoing feature of the system. It could not be resolved by means of the once-off arrangement that applies to the persons who came back into insurance in 1974. Solutions to this problem could have major financial implications and could also involve substantial changes to the existing system of social insurance contribution conditions. The National Pensions Board will be considering this issue specifically and reporting to me in the context of its examination of social insurance pension arrangements.

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