One of the conditions for receipt of an old age (contributory) pension is that a person must have entered insurance before the age of 56. This condition has been a feature of the scheme since its introduction in 1961. Its purpose is to link entitlement to pension with a reasonable level of contributions to the social insurance fund during the course of a person's career.
The person concerned paid social insurance contributions for the first time in the 1990-1 tax year at which stage he was 57 years of age. His income for tax purposes has been assessed by the Revenue Commissioners at less than £2,500 in each of the two preceding years, i.e. 1988-9 and 1989-90. In the circumstances contributions are not payable under the legislation in respect of those years. He could not, therefore, satisfy the condition requiring entry into insurance before age 56.
A special half-rate old age (contributory) pension was introduced from April 1999 for self-employment persons who were age 56 or over in April 1988 when the self-employed became liable to pay insurance contributions. He does not qualify for this pension, however, as he was under age 56 at that time and does not, in any event, have the required 260 contributions which are also needed to qualify for this pension.
In March 2000, the person concerned qualified for a pro rata pension from my Department in accordance with the bilateral agreement on social security which this country has with the USA. Under this agreement, insurance contributions paid in Ireland and the USA may be combined to give entitlement to pension at a pro-rata rate. He qualified for this pension from the date he reached age 66 in July 1998. This pension is currently being paid at the rate of £10.90 per week.
