Dáil Éireann debate -
Tuesday, 9 Oct 2001

Vol. 541 No. 4

Written Answers. - Pension Provisions.

David Stanton

Question:

363 Mr. Stanton asked the Minister for Social, Community and Family Affairs the way in which the qualified adult rate is calculated where old age contributory pension is paid below the maximum rate; the amount to be paid to such qualified adults in the various category contributions; the legislative or statutory device under which such calculations are made; the changes that have occurred in the administration of these rates; the number of pensioners involved; and if he will make a statement on the matter. [23083/01]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The 2001 budget provided for an increase of £15, 19.05, per week in respect of a qualified adult who is age 66 years or over, on old age contributory pension, retirement pension and invalidity pension. The increase was the first step in the process of increasing the qualified adult rate, QAA, to the same level as the personal rate of the old age non-contributory pension. The increase in the QAA rate was given in order to improve the position of women who do not qualify for a pension in their own right and is designed to complement administrative individualisation which will allow for direct payments to a qualified adult. Administrative individualisation is being examined by a working group set up under the PPF and comprises representatives of the Department, the social partners and the Department of Finance.

For people whose old age contributory pension, OACP, entitlement commenced on or after 6 April 2001, the rates of pension and qualified adult allowance, QAA, are as follows:

Average Contribution	Personal Pension	Qualified Adult under 66	Qualified Adult 66 or over
48 or over	£106.00 (134.59)	£68.20 (86.60)	£79.60 (101.07)
20-47	£103.90 (131.93)	£68.20 (86.60)	£79.60 (101.07)
15-19	£79.50 (100.94)	£51.20 (65.01)	£59.70 (75.80)
10-14	£53.00 (67.30)	£34.10 (43.30)	£39.80 (50.54)

These are the relevant maximum rates, the rates that apply where the income of the spouse is not more than £70, 88.88, per week. Reduced rates are payable, on a sliding scale, where the income of the spouse is more than £70, 88.88 per week but less than £145, 184.11.

For contributions that average below 20, the rates of pension and of QAA have a similar relationship to the maximum rates, that is, 75% of the maximum in each case for averages between 15 and 19 and 50% for averages between ten and 14. Prior to April 2001 this was not the case. In applying the new arrangements from April 2001, however, persons whose pension entitlement commenced prior to 6 April 2001 continued on the previous arrangements. The rates currently applicable in such case are as follows:

Average Contribution	Personal Pension	Qualified Adult under 66	Qualified Adult 66 or over
48 or over	£106.00 (134.59)	£68.20 (86.60)	£79.60 (101.07)
20-47	£103.90 (131.93)	£68.20 (86.60)	£79.60 (101.07)
15-19	£79.50 (100.94)	£68.20 (86.60)	£72.60 (92.18)
10-14	£53.00 (67.30)	£68.20 (86.60)	£72.60 (92.18)

The changes in question were introduced by Section 27 of the Social Welfare Act, 2001 and are set out in Statutory Instrument No. 99 of 2001. A total of 133 pensioners have been awarded OACP since April 2001. Of these, 67 are receiving QAA at 75% of the maximum rate and 66 are getting QAA at 50% of the maximum rate. A total of 3,011 pensioners have benefited from the saver provisions.