Dáil Éireann debate -
Tuesday, 23 Jun 1998

Vol. 492 No. 7

Written Answers. - Pension Provisions.

Noel Ahern

Question:

278 Mr. N. Ahern asked the Minister for Social, Community and Family Affairs the options, if any, available to an individual who has an average of eight contributions over the working life; if a refund can be given; if it is indexed linked for payments made in the 1950s; if a prorata pension can be given; if proposals to backdate homemaker credit stamps scheme are being examined; and if he will make a statement on the matter. [15254/98]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

As the Deputy will be aware from 21 November last, new pro rata pensions were introduced so that people who pay social insurance for a reasonable period of time will qualify for an old age (contributory) pension. A yearly average of between 15 and 19 contributions gives a pension of 75 per cent of the maximum rate, while an average of between ten and 14 gives a pension of 50 per cent of the maximum rate. To qualify a person also requires a minimum of 260 paid contributions. This measure will be of benefit to many contributors who for various reasons took time out of the paid workforce.

One of the qualifying conditions for old age (contributory) pension is that a person must have entered insurance at least ten years before pension age, which has been a feature of the scheme since it was introduced in 1961. A person who enters social insurance for the first time after age 56 and therefore, cannot qualify for an old age (contributory) pension can get a refund of the pension portion of their contributions provided they do not qualify for an old age (non-contributory) pension. Refunds are not awarded in other circumstances.

In the Social Welfare Act, 1997 special provision was made for self employed contributors who entered insurance in 1988 but were already over the age of 56 at that time and who had previously paid social insurance contributions as an employee, to receive a refund of the pensions element of their self employed social insurance provided they do not qualify for an old age (contributory) or (non-contributory) pension. Heretofore, their earlier contributions precluded them from receiving such a refund.

Interest, linked to the consumer price index, is payable on refunds made on or after 1 November 1990.

Retrospection in relation to homemaker disregards would have significant cost implications and would fall to be considered in a budgetary context.

I also wish to point out that any person resident in the State may qualify for an old age (non-contributory) pension which is payable subject to a means test.

If the Deputy has a particular case in mind I will have this investigated if he supplies the details.