Dáil Éireann debate -
Tuesday, 4 Mar 1997

Vol. 475 No. 7

Written Answers. - Social Welfare Benefits.

Ivor Callely

Question:

212 Mr. Callely asked the Minister for Social Welfare the number of social welfare recipients which are affected by the 1953 rule of the Department whereby their contributions prior to 1953 are not taken into consideration when assessing contributions; and if he will make a statement on the matter. [5730/97]

Minister for Social Welfare (Proinsias De Rossa)

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 that in future, people who pay PRSI, but who currently fail to qualify for the present minimum old age (contributory) 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 newpro rata pension 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, widows and orphans pension 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.

Assuming that the Deputy's question effectively refers to the number of people who would be entitled to a contributory pension if insurance paid prior to 1953 was taken into account in calculating the yearly average, this information is not available.

Ivor Callely

Question:

213 Mr. Callely asked the Minister for Social Welfare the number of social welfare recipients which are not in receipt of full benefit due to gaps in their social welfare contributions, in particular recipients affected by the rule which prevented employers deducting related social insurance in the 1960s and 1970s if the employee was earning £750 or more per year; if the employee in such circumstances was officially notified by the Department that they could make a voluntary contribution; and if he will make a statement on the matter. [5731/97]

Minister for Social Welfare (Proinsias De Rossa)

Special pro rata pensions were introduced in 1988 for certain persons who failed to qualify for contributory pension, because they were out of insurance for periods prior to 1974 when their earnings exceeded the insurable limit, and their yearly average of contributions was less than 20. These arrangements were devised to deal with the once off situation arising from the removal of the remuneration limit in 1974. Under the 1988 arrangements, pensions are awarded for averages of between five and 19 contributions. As at December 1996, 424 people were in receipt of these special pro rata pensions.

If an insured contributor's income went over the insurable limit, the old insurance card had an instruction — under the heading "Instructions to Insured Persons"— in bold black print to the effect:

"6. if you cease to be insurably employed and wish to continue your insurance as a voluntary contributor notify the Department immediately."