Written Answers. - Pro rata Pensions.
Róisín Shortall
Question:
63
Ms Shortall
asked the
Minister for Social Welfare
the plans, if any, he has for the introduction of pro rata pensions in all cases where the current minimum average requirement is not satisfied in view of the recommendations contained in the National Pension Board's final report; his views on the need to make special arrangements in the case of women who paid PRSI for a number of years, then gave up work in favour of home duties and now find that they cannot qualify for a pension in their own right because their contribution average falls below the minimum requirement; and if he will make a statement on the matter.
Noel Ahern
Question:
65
Mr. N. Ahern
asked the
Minister for Social Welfare
if he has as yet completed his review of the contributory old age pension scheme; and if he will make a statement in regard to granting a partial contributory pension to applicants such as a person (details supplied) who has been refused in spite of having ten full years of contributions prior to 1953.
It is proposed to take Questions Nos. 63 and 65 together.
As the Deputies will be aware, the final report of the National Pensions Board,Developing the National Pension System, was presented to me recently. This is a comprehensive and complex report which runs to 250 pages and contains 86 conclusions and recommendations including those relating to eligibility conditions for old age pensions and people who have gaps in their insurance.
At present 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. Social insurance 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.
The National Pensions Board in its final report recommends that the arrangements for including pre-1953 contributions should be abolished. It also recommends a wider range ofpro rata pensions related to the average number of contributions over an insured lifetime.
I have already introduced legislation based on the report's recommendations for widowers. Also under new arrangements which I will introduce shortly, time spent working full time in the home rearing young children or caring full time for elderly or incapacitated people will be disregarded in determining entitlement to contributory old age pension. Prior to this, people in this situation would have had a gap in their PRSI record which could have prevented them from qualifying for a pension. Regulations to give effect to this provision are being prepared in my Department at present.
The report and the remaining recommendations are being studied within my Department and I intend, in due course, to bring forward proposals based on these issues. I am not, as yet, in a position to indicate when these proposals are likely to be brought forward.
In relation to the question by Deputy Ahern, the person concerned, as he is over 66 years of age, may qualify for an old age non-contributory pension, subject to a means test. I have arranged for an application form to be forwarded to him.
