Vol. 497 No. 2
309 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs the reason a higher average contribution of 24 stamps per year is required in respect of retirement pension compared to contributory old age pension; the plans, if any, he has to modify this rule; and if he proposes to extend mixed insurance and pro rata rules to apply equally to retirement and contributory old age pensions. [24792/98]
Under existing legislation, "pensionable age" is defined as being 66 years of age. The higher average number of contributions required to qualify for a minimum retirement pension reflects the fact that this pension is payable at age 65, prior to pensionable age being attained. A person can qualify for a pro rata, mixed insurance retirement pension if he or she satisfies the yearly average condition using a mixture of full rate PRSI contributions and modified rate contributions.
While I have no plans to amend the existing arrangements, I have long stated my commitment to ensuring the most broadly feasible contributory pension coverage to as many categories as possible. With this in mind, my officials are undertaking a detailed examination and review of all the contribution conditions generally applying to the contributory old age and retirement pensions. I hope to have a report of this in the first quarter of next year.
The issues involved are complex and raise fundamental questions regarding the number of contributions, both paid and credited, that a person has, the PRSI actually paid in respect of their contributions and their overall value. Issues of equity and redistribution within the social welfare system also arise to be addressed.
