Dáil Éireann Debate, Wednesday - 29 September 2004
1299 Mr. Naughten asked the Minister for Social and Family Affairs the reason for the differential between the rate of payment for the contributory and non-contributory old age pension; the plans she has to bring the non-contributory rate in line with that of the contributory rate; and if she will make a statement on the matter. [21636/04]
View answerThe maximum rate of the old age contributory pension is €167.30 per week. The maximum rate for the old age non-contributory pension is €154.00 per week. Additional allowances are paid to those with dependants, those who are living alone and those over 80 years of age. The payment of higher rates to recipients of social insurance payments is common practise in social welfare schemes where there is an equivalent social assistance scheme available. The commission on Social Welfare examined this issue in its report in 1986 and suggested that a differential of 10% should be maintained between insurance and assistance schemes. The Commission considered that the higher rates are required to preserve the acceptability of the social insurance concept, particularly from the viewpoint of those who contribute to the social insurance fund. The Pensions Board, in its report on the national pensions policy initiative, published in 1998, supported the conclusions of the commission.
At the end of August 2004, there were 204,565 people receiving an old age contributory or retirement pension and 85,504 receiving an old age non-contributory pension. The numbers receiving non-contributory pensions have declined by over 20% in the last ten years which reflects improved social insurance coverage and increased labour force participation, particularly amongst women. It is also an indication of the Government's commitment to extending contributory based pensions to as many people as possible through easing the qualifying conditions and catering for special groups who marginally fail to qualify for a pension.
