To qualify for the old age contributory pension, a person must have entered insurance at least ten years before 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.
I announced in my budget speech that in future people who pay PRSI, but fail to qualify for the present minimum old age pension, will receive a contributory pension as long as their yearly average number of contributions is between ten and 20. A yearly average between 15 and 19 will give entitlement to a pension of 75 per cent of the maximum rate, while an average of between ten and 14 will give entitlement to a pension of 50 per cent. This measure, which will be introduced in November next, will mean that people with broken or sporadic contribution records will now qualify for a contributory pension, as long as they have at least 260 paid contributions.
Social Insurance paid before 1953 under the National Health Insurance Acts can be taken into account for old age contributory pension and the new pro-rata pension in satisfying the first two conditions set out above 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, widows and orphans pension and unemployment insurance contributions. These contributions gave specific entitlement only to the benefits of the scheme 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 the satisfying of the yearly average test. However they are still reckonable for the other two conditions.
If the Deputy has a specific case in mind and can pass on the relevant details I would be happy to have the position investigated.