Dáil Éireann debate -
Wednesday, 13 Oct 1993

Vol. 434 No. 5

Written Answers. - Social Welfare Benefits.

Bernard J. Durkan

Question:

11 Mr. Durkan asked the Minister for Social Welfare the plans, if any, he has to provide old age contributory pension entitlements to those who currently have insufficient contributions to qualify for this pension; and if he will make a statement on the matter.

Bernard J. Durkan

Question:

12 Mr. Durkan asked the Minister for Social Welfare if he intends to reduce the qualifying age for the old age pension or retirement pensions; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

I propose to take Questions Nos. 11 and 12 together.

To qualify for an old age contributory pension a person must have entered insurance at least ten years before reaching pension age, have at least 156 contributions paid and have a yearly average of at least 20 contributions registered since January 1953 when the unified system of social insurance came into effect, or the time they started insurable employment, if later.

The purpose of these conditions is to ensure that entitlement to the pension is limited to those who have made a reasonable level of contributions to the social insurance fund during the course of their careers.

The yearly average condition has caused some difficulties for people with gaps in their insurance but in recent years I have taken measures to alleviate some of the anomalies caused by this.

In 1988 I introduced special partial old age pensions for people who became compulsorily insured for pension in 1974 but failed to qualify because of gaps in their insurance record caused by the operation of the remuneration limit. Under these arrangements pensions were granted for averages of between 5 and 20.

In 1991pro rata pensions for people with “mixed insurance” records were introduced, the rate of pension payable being in proportion to the periods of insurance completed at the rate appropriate for old age/retirement pensions.

The 1992 Social Welfare Act made provision for the introduction of an alternative "yearly average" test for entitlement to the maximum rate of old age contributory and retirement pensions. This allows a person to qualify for full pension if he/she has an average of 48 since 6 April, 1979 when the present PRSI system came into operation.

The matters referred to by the Deputy including the question of the qualifying ages for pensions are among the issues being addressed by the National Pensions Board in the context of its final report on the future development of pensions generally.

I expect to receive the board's recommendations shortly and these matters will be considered further in the context of these recommendations.

Peadar Clohessy

Question:

13 Mr. Clohessy asked the Minister for Social Welfare if people in receipt of supplementary welfare allowance from the regional health boards will be allowed retain a portion of these payments on the new back to work allowance scheme; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

The new back to work allowance scheme, which is a pilot scheme, is intended to provide a financial cushion to persons in receipt of unemployment payments who wish to explore the potential of employment, or self-employment and work experience in developing indigenous industries or in the voluntary sector.

Initially the scheme will allow up to 3,000 long term unemployed people to keep up to three quarters of their unemployment payments while pursuing viable employment in the indigenous industries sector or while setting up self employment ventures in areas such as horticulture, fisheries, heritage or tourism or in the voluntary sector.

I am confident that this scheme will encourage growth in the industries which have been identified in the Culliton report as having potential for expansion while at the same time providing opportunities to unemployed people to explore additional employment or self employment opportunities.

The scheme is targeted primarily at people on the live register who have been in receipt of unemployment payments for 12 months or longer. It does not apply to people in receipt of supplementary welfare allowance. I would however like to point out that a person receiving a rent allowance under the supplementary welfare allowance scheme who qualifies for payment of the back to work allowance will be able to retain the rent allowance, along with other extra benefits, for the duration of the back to work payment.