Dáil Éireann debate -
Tuesday, 14 Jun 1994

Vol. 443 No. 7

Written Answers. - Old Age Contributory Pension Eligibility.

Ivor Callely

Question:

22 Mr. Callely asked the Minister for Social Welfare the approximate number of people who are unable to avail in full of any benefit due to the regulations with regard to contributions to social welfare prior to 1954; the estimated cost if benefits were to be granted; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

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 of entering insurable employment if later.

Social insurance contributions paid before 1953 under the national health insurance Acts can be taken into account in satisfying the first two conditions but cannot be used in calculating the yearly average.

In this regard it is relevant to point out that prior to 1953 three different types of contributions were payable. These were —national health insurance, widow's and orphan's pensions and unemployment insurance contributions.

These contributions gave specific entitlement only to the benefits of the schemes under which they were paid. The old age contributory pension scheme was introduced in 1961. Contributions paid by insured persons prior to 1961 did not contain an element in respect of that pension. However as a concession and to enable persons reaching pension age at that time to qualify immediately for a contributory pension, contributions paid prior to 1953 were taken into account in calculating a person's entitlement to pension. These transitional arrangements operated until 1973. From that date contributions paid prior to 1953 were no longer counted for the purposes of satisfying the yearly average test. However they are still reckonable for the other two conditions.

The National Pensions Board in its final report "Developing the National Pension System" recommends that the arrangements for counting pre-1953 contributions should be abolished.

Details in relation to the number of people who might qualify for an old age contributory pension if pre-1953 contributions were taken into account for the yearly average condition are not available.