In order to qualify for a state pension contributory a person must satisfy a number of qualifying conditions which include commencing insurable employment at least 10 years before pension age, payment of a minimum of 260 qualifying contributions and achieving a yearly average of at least 10 qualifying contributions, paid or credited, over their working life. To determine the yearly average a person's contribution record is averaged from 1953, or from the year of starting insurable employment, if later, to the end of the tax year before reaching pension age. The person concerned achieved a yearly average of 17, which is sufficient to entitle her to 75% of the state pension (contributory) at the current personal rate of €172.70 per week, with effect from 21 August 2008. In order to qualify for the maximum rate a yearly average of 48 contributions is required.
It is accepted that the average contributions test can have an impact on pension entitlements, particularly where a person has a significant gap in their overall record. The Green Paper on pensions considered a number of issues related to the qualifying conditions for a social welfare contributory pension including the contributions test. A framework for future pensions policy is being developed and the issue of contributions will be addressed in that context. It is expected that the framework will be finalised shortly.