Dáil Éireann Debate, Tuesday - 27 April 2004
861 Mr. R. Bruton asked the Minister for Social and Family Affairs if she will consider abolishing the different rates of pension awarded to persons whose average contribution record lies between the minimum 20 stamps and 48 stamps per year. [11369/04]
View answerIn recent years the Government introduced a number of measures designed to make qualification for old age pensions easier for people with reduced or broken insurance records. In 1997 the average yearly number of contributions required for a minimum pension was reduced from 20 contributions to ten.
Pro rata pensions are also available for people with insurance contributions at different rates or from other EU countries or countries with whom Ireland has signed a bilateral agreement. Special pensions were introduced for those with pre-53 contributions and for the self-employed who were already over 56 years of age in 1988 when compulsory insurance was introduced for that group.
Measures are also in place since 1994 to protect the pension entitlements of those who take time out of the paid workforce for caring duties. The homemaker's scheme allows for up to 20 years to be disregarded when a person's insurance record is being averaged for pension purposes.
There are many reasons men and women have gaps in their social insurance records. These can include time spent living abroad, working in the home and periods spent working in employment that may not have been insurable for pensions purposes. At present 56% of women and 44% of men are in receipt of a reduced rate of old age contributory and retirement pensions.
The measures introduced in recent years are designed to ensure that adequate recognition is given to all contributions while at the same time ensuring that payments are only made to those who have had a reasonable attachment to the social insurance fund throughout their working career. I am satisfied that the pensions received by those on reduced rate or pro rata pensions represent good value when compared to the level of contributions required for a full rate payment. At present there are no plans for one standard rate pension.
