Dáil Éireann Debate, Tuesday - 21 October 2008
172 Deputy Denis Naughten asked the Minister for Social and Family Affairs is she will review the average contribution test for the State contributory pension; and if she will make a statement on the matter. [34488/08]
View answerThe average contributions test has been a key qualifying condition for contributory pensions since the scheme was introduced in 1961. With a few exceptions, a person's contribution record is generally averaged from the first day they enter social insurance until they reach retirement age. A contributory pension is a very valuable benefit and the objective of the average contributions test is to ensure, amongst other things, that those qualifying have made a sustained contribution to the social insurance fund over the course of their working lives.
The operation of the average contributions test is discussed in the Pensions Green Paper and it was also raised by many people in the associated consultation process. A number of groups, including older women returning to employment after many years caring for family and people returning from abroad, have complained about the impact a large gap in their insurance record can have on their pension entitlements.
The Green Paper consultation process concluded at the end of May and work has commenced on developing a framework for future pensions policy which the Government has indicated will be announced by the end of the year. Changes to the average contribution test will be considered in that context.
