Dáil Éireann debate -
Tuesday, 22 Oct 1996

Vol. 470 No. 4

Written Answers. - Pension Eligibility.

Liam Aylward

Question:

242 Mr. Aylward asked the Minister for Social Welfare when he intends to bring forward proposals, promised in April 1995, relating to the eligibility for old age pensions in view of the recommendations of the National Pensions Board in its final report entitled Developing the National Pension System; and if self-employed persons who entered the PRSI scheme in April 1988 will be included in any such proposals. [19095/96]

Minister for Social Welfare (Proinsias De Rossa)

The final report of the National Pensions Board (NPB) Developing the National Pension System is a comprehensive report which was published on 16 December 1993.

In this report the NPB put forward, inter alia, a number of recommendations relating to eligibility for old age pensions generally, including proposals for a wider range of pro-rata pensions related to the average number of contributions over an insured lifetime. They also recommended that the number of paid contributions required to qualify for an old age (contributory) pension be increased from 156 (three years) to 520 (ten years) contributions.

The report and its recommendations are being studied within the Department at present and I hope to be in a position to bring forward proposals in the context of the next budget. Any such proposals would also, of course, have to take account of the future funding of pensions generally.

In relation to self-employed persons who entered insurance in 1988 as the Deputy will be aware to qualify for the old age contributory pension, a person must,inter alia, have entered insurance at least ten years before pension age. This condition has been a feature of the scheme since its introduction in 1961. The purpose of the condition is to link entitlement to a pension with a reasonable level of contributions to the Social Insurance Fund during the course of a person's career. This condition applies to self-employed persons in the same way as it applies to all insured people. Accordingly, self-employed people, who became insured for the first time when social insurance was extended to the self-employed in 1988 and who were then aged 56 or over would not qualify for the old age contributory pension. They are, of course, covered for widow and widower's and orphan's pensions.

As I have indicated previously while I, in principle, favour apro-rata pension approach, I have no plans to relax the requirement that a person must have entered insurance at least ten years before pension age.