Vol. 474 No. 6
226 Mr. Aylward asked the Minister for Social Welfare if he will give details of the changes announced in the 1997 budget governing the self-employed insurance scheme and the new qualifying conditions for old age pensions. [3714/97]
229 Mr. B. Smith asked the Minister for Social Welfare the proposals, if any, he has to introduce a wider range of pro-rata pensions based on the average number of contributions paid; and if he will make a statement on the matter. [3761/97]
It is proposed to take Questions Nos. 226 and 229 together.
To qualify for an old age contributory pension a person must have entered social 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 — or 24 in the case of a retirement pension — registered since January 1953 — when the unified system of social insurance came into effect — or the time they started insurable employment, if later.
As announced in my budget speech I am introducing new pro rata pensions so that, in future, people who pay social insurance for a reasonable period of time will qualify for an old age contributory pension. From November of this year a yearly average of between 15 and 19 will give a pension of 75 per cent of the maximum rate, while an average of between ten and 14 will give a pension of 50 per cent of the maximum rate. To qualify a person will also need to have a minimum of 260 paid contributions. Adult and child dependant allowances will be payable at the full rate.
I am also signalling that from 6 April 2002 all claimants will require 260 paid contributions to qualify for old age contributory pension or retirement pension. This requirement will increase to 520 contributions from 6 April 2012 onwards.
These proposals are broadly in line with the recommendations contained in the final report of the National Pensions Board "Developing the National Pension System".
In relation to the self-employed any person who was over 56 in April 1988 when insurance for the self-employed was introduced, and who also had paid social insurance at the full rate at any stage between 1953 and 1988, will receive a refund of the pensions element of their class S social insurance contributions provided, of course, that he-she does not qualify for an old age contributory or non-contributory pension. Up to now their earlier contributions would have prohibited them from receiving such a refund.
