Vol. 534 No. 3
241 Mr. Durkan asked the Minister for Social, Community and Family Affairs if he will improve the means test in respect of applicants for non-contributory old age pension; and if he will make a statement on the matter. [10754/01]
The old age non-contributory pension is a social assistance scheme which is designed to provide financial support for older people who do not qualify for one of the contributory pension schemes. In common with other social assistance schemes the OANCP features a means test which is intended to ensure that available resources are targeted at those who are most in need. The operation of the means test is kept under review and changes are made as required.
In October 2000, a new method of capital assessment for most means-tested schemes, including OANCP, came into operation. Under the new method the first £10,000 of capital is disregarded, capital between £10,000 and £20,000 is assessed on the basis of £1 weekly means for each £1,000 of capital, capital between £20,000 and £30,000 is assessed on the basis of £2 weekly means for each £1,000 of capital and capital above £30,000 is assessed on the basis of £4 weekly means for each £1,000 of capital. The new system is designed to ensure that those with modest amounts of capital receive the greater share of available support. These limits are doubled in the case of a married couple. Any further changes to the scheme would have to be considered in a budgetary context.
In the Review of our Action Programme for the Millennium, the Government reaffirmed its commitment to caring for our older people by committing itself to increasing the old age non-contributory pension to £100 per week by 2002. We are well on the way to achieving this target with very significant increases granted over the last four budgets. In budget 2001, further significant progress was made towards achieving this goal following significant increases in social welfare pension rates. With effect from 6 April 2001, the personal rate of old age non-contributory pension was increased to £95.50 per week. This represents an overall increase of £28 per week for this scheme since this Government took office. These measures reflect the emphasis I have placed on improving the personal pension rates of our older people which I believe is the most effective and equitable way of ensuring that their position is improved.
242 Mr. Durkan asked the Minister for Social, Community and Family Affairs his plans to provide pension entitlements for those previously employed in the State or semi-State sectors whose contribution category does not qualify them for old age pension at present; and if he will make a statement on the matter. [10755/01]
Historically, most public servants were excluded from full social insurance cover. This arose as it was viewed that such employees had provision within the terms and conditions of their public sector employment's for adequate cover for contingencies such as sickness or old age and that the risk of unemployment was not a factor in their case. While there are no plans at present to give those who paid only the modified rate of social insurance access to the old age contributory pension scheme, in recent years a number of measures have been introduced which is making it easier for those with mixed insurance records to receive a payment.
Special arrangements were introduced for old age contributory and retirement pension purposes in 1991 to cater for people with a mixture of full and modified rate PRSI. The revised arrangements provide for the payment of pro-rata pensions in proportion to the periods of insurance completed at the class A rate. In 1997 the yearly average required for a minimum pension was reduced to ten contributions. More recently, I introduced a special flat-rate old age contributory pension, payable at 50% of the maximum personal rate, to benefit people with pre-1953 social insurance contributions who, due to the yearly average rule, failed to qualify for a pension. I understand that former public servants are one of the main groups benefiting from these measures. The old age non-contributory pension is available to those who do not qualify for a contributory pension but who can satisfy a means test.
243 Mr. Durkan asked the Minister for Social, Community and Family Affairs if he will provide for necessary amendments to the various pensions Acts from 1960 onwards with a view to including all contributions made during the course of the applicant's working life for consideration in determining eligibility for pension purposes; and if he will make a statement on the matter. [10756/01]
246 Mr. Durkan asked the Minister for Social, Community and Family Affairs if he will allow pre-1953, post-1953 and self employment insurance contributions to be aggregated for the purpose of determining eligibility for contributory old age pension; and if he will make a statement on the matter. [10759/01]
I propose to take Questions Nos. 243 and 246 together.
