Dáil Éireann debate -
Tuesday, 6 Oct 1998

Vol. 494 No. 4

Written Answers. - Pension Provisions.

Johnny Brady

Question:

365 Mr. J. Brady . asked the Minister for Social, Community and Family Affairs if his Department will provide a solution to the self-employed pensioners question of less than ten years contribution; if consideration will be given in the 1998 budget to allow pro rata pensions for those with over five years contributions; and his views on whether a start needs to be made in the budget in view of the fact that these people had their contributions taken from them over the years and were unable to invest these contributions in an alternative pension scheme. [18551/98]

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

To qualify for the old age contributory pension, a person must, inter alia, have entered insurance at least ten years before pension age. This condition has been a feature of the scheme since its introduction in 1961. The purpose of the condition is to link entitlement to a pension with a reasonable level of contributions to the social insurance fund during the course of a person's career. Any self employed person who has contributed and does not qualify for either a contributory or a non-contributory pension receives a refund of the pension element — 53 per cent — of his or her PRSI contributions with interest, which is a fair arrangement.

A non-contributory pension is, of course, available to former self employed people, who have insufficient contributions, in the same way as it is available to every other citizen, resident in the State, subject to a means test. As I have stated on a number of occasions, I will continue to ensure the broadest possible contributory pension cover to as many categories as possible. I am fully conversant with the issue in question and would like to reassure the Deputy, and this House, that the matter is receiving my detailed attention. However, I must stress that the cost of paying an old age contributory pension to this group of people would be significant and any proposal in this regard would have to be assessed against other competing demands in the social welfare area.