Vol. 489 No. 5
126 Mr. N. Ahern asked the Minister for Social, Community and Family Affairs the estimated extra annual cost to his Department if credit for pre-1953 contributions is granted for old age pension purposes taking into account any study previously done on this issue; and if he will make a statement on the matter. [8484/98]
The costings requested by the Deputy are not readily available.
As the Deputy will be aware, to qualify for the old age contributory pension, a person must (i) have entered insurance at least ten years before pension age, (ii) have at least 156 contributions paid and (iii) 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 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 orphan'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 person prior to 1961 did not contain an element in respect of this pension. However, social insurance 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.
