Written Answers. - Pension Provisions.
Michael Ring
Question:
332
Mr. Ring
asked the
Minister for Social, Community and Family Affairs
the number of people currently receiving the minimum pre-1953 old age contributory pension; and the plans the Government have to increase this amount to the maximum contributory pension rate.
[18909/01]
Michael Ring
Question:
333
Mr. Ring
asked the
Minister for Social, Community and Family Affairs
the number of people excluded from receiving a full contributory pension due to the pre-1953 contributions; and the plans he has to include the people with pre-1953 contributions to get a full old age contributory pension.
[18910/01]
I propose to take Questions Nos. 332 and 333 together.
The special flat rate old age contributory pension – OACP – payable at 50% of the maximum personal rate introduced by me from May 2000 is primarily designed to benefit people with pre-53 social insurance contributions who, due to the yearly average rule, failed to qualify for a pension. This is a special measure designed to benefit people who would not otherwise receive a pension, though some people who were already receiving pension based on mixed insurance, at less than 50% of the maximum rate, have also benefited by transferring to this special pension.
At present 13,823 people are receiving the pension. Applications are, however, still being received and processed so the final numbers qualifying could be significantly higher.
In general, all contributions paid or credited, at the appropriate rate, on a person's record are assessed when their entitlement to a pension is being examined. However, while pre-1953 insurance contributions may be counted towards the basic number of paid contributions required, they may not be used to satisfy the average contributions test. Only contributions made under the unified social insurance scheme, introduced in 1953, can be used to satisfy this test.
The question of allowing pre-1953 insurance to be used for the average contributions test was examined in the first phase of the review of the qualifying conditions for the old age contributory and retirement pensions which was published in August 2000. The review did not favour affording full recognition to these contributions because such contributions are different in nature from contributions made under the unified system.
There are currently 31,103 people in receipt of old age contributory pension aged 66 or over, at a reduced rate, excluding those in receipt of the special pre-53 pension.
In the absence of a detailed assessment of the insurance records concerned it is not possible to accurately estimate the numbers who would benefit from allowing pre-53 insurance to be used in assessing a person's yearly average contribution record.
Proposals to increase the level of the pre-53 pension or to afford additional recognition to pre-53 social insurance contributions would have very significant cost implications which could only be considered in a budgetary context.
