Entitlement to a retirement pension at age 65 is conditional on having 156 paid contributions, having entered insurance before age 55 years and having a minimum yearly average of contributions paid or credited from date of entry to age 65. The minimum yearly average required is 24.
The person concerned had an average of 35 contributions since entering insurance and accordingly was awarded a slightly reduced married rate retirement pension of £97.20 in March of this year which was increased to £101.10 in July. The current maximum rate for a married couple is £104.80.
Entitlement to retirement and old age contributory pension is based on an average number of contributions over a person's insured lifetime. This principle is generally considered a reasonable one. I have made special arrangements for certain people with gaps in their insurance records due to the operation of the remuneration limit for social insurance whose averages as a result were below the minimum of 29. Subject to this, however, the average condition has been a feature of the schemes since the outset.
The whole area of conditions for entitlement to pensions is among the issues being examined at present by the National Pensions Board. I expect to receive the board's final report shortly. Any changes in the contribution conditions for pensions will be considered in the light of the board's recommendations in this area.
