Dick Spring
Question:29 Mr. Spring asked the Minister for Social, Community and Family Affairs the reason contributions made prior to 1953 cannot be reckoned for pro rata pension purposes; and if he will make a statement on the matter. [2678/98]
Written Answers. - Social Welfare Pensions.
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. The yearly average condition was reduced to ten contributions for the new pro-rata old age (contributory) pension which came into force with effect from 21 November last. To qualify, a person with a yearly average of between ten and 19 must have 260 rather than 156 paid contributions.
Prior to 1953 three different types of contributions were payable — national health insurance, widow's and ophan's pension and unemployment insurance contributions. These 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 this 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, contributions paid before 1953 under the National Health Insurance Acts can be taken into account for old age contributory pension purposes in satisfying the first two conditions, set out in the first paragraph above, but cannot be used in calculating the yearly average.