Vol. 504 No. 7
277 Mr. G. Mitchell asked the Minister for Social, Community and Family Affairs if he will make a statement on the possibility of having pre-1953 contributions taken into account for purposes of determination of pension entitlements. [12699/99]
Prior to 1953 different types of contributions were payable – national health insurance, widow's and orphan's pension and unemployment insurance contributions – which gave specific entitlement only to the benefits of the schemes under which they were paid. The unified system of social insurance was introduced in 1953 and the first major extension to the range of contingencies covered came in 1961 with the introduction of the old age (contributory) pension scheme.
While contributions paid prior to 1961 contained no pension element, it was decided to count all such contributions paid under the unified scheme towards qualification for the new pension. Special transitional arrangements were also made for people who were close to reaching pension age at that time, which permitted certain contributions paid before 1953 to be taken into account for satisfying the yearly average test.
In addition, provision was made for pre-1953 contributions, paid under the National Health Insurance Acts, to be taken into account for the purposes of satisfying two of the qualifying contribution conditions for the old age (contributory) pension, namely, that a person must (i) have entered insurance at least ten years before pension age and (ii) have, at least, 156 contributions paid. This arrangement still applies.
279 Mr. O'Shea asked the Minister for Social, Community and Family Affairs the proposals, if any, he has to bring forward the date for the payment of budgetary increases in pensions; and if he will make a statement on the matter. [12746/99]
The 1999 budget provides for an increase of £6 per week for old age pensioners and £3 a week for their spouses with effect from the beginning of June. These increases will mean that in the two years since taking office, the Government has moved half way towards meeting its commitment to increase the old age contributory pension to £100 per week over its five year term.
The question of future increases in social welfare payments, including the timing of these increases, are matters to be examined in a budgetary context in the light of available resources and having regard to the Government's other priorities.
280 Mr. O'Shea asked the Minister for Social, Community and Family Affairs the proposals, if any, he has to bring the method of assessment of return on savings in relation to non-contributory old age pension in line with actual deposit interest rates; and if he will make a statement on the matter. [12747/99]
It would not be feasible to assess means from capital on the basis of actual returns from investments, as this would necessitate frequent reviews of entitlements of a very significant number of recipients whenever interest rates fluctuated or the capital was moved into a different investment option. For this reason a notional value is ascribed to the capital owned.
