The State pension is a very valuable asset and it is important, for sustainability reasons, that those who receive it have made a significant contribution towards it during a working life. 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;
- a minimum of 520 qualifying contributions paid; and
- achieving a yearly average of at least 10 qualifying contributions, paid or credited, over their working life.
“Developing the National Pension System - Final Report of the National Pensions Board” , published in 1993, recommended that the number of paid contributions required to qualify for a contributory pension should be increased to 520 contributions. The necessary legislation to effect the recommendations of the National Pensions Board was contained in Section 12 of the Social Welfare Act 1997 (now incorporated in the Social Welfare Consolidation Act 2005)
which provided for the implementation of the change in two stages, with the paid contribution requirement being standardised at 260 from 2002, rising to 520 from April 2012. This condition applies for all new claims to the State pension (contributory), except in certain cases where further Social Insurance contributions may have been paid outside the State, and in such cases EU regulations or a bilateral agreement on social security may apply.
My Department has taken a number of actions to increase awareness of changes to the State pension, including the increase in the contribution requirements, and to assist customers determine their entitlements. An information pack relating to a number of changes to State pension was published and circulated widely to the various representative groups and to all members of the Oireachtas. Presentations on the introduction of these changes were also made at the Department’s regular briefings with customer representative groups and to members of the public.
Finally, social welfare supports will continue to be available to those who need them most and where a person fails to meet the qualifying conditions of an insurance based scheme, a means tested assistance payment, such as the State pension (non-contributory), may be available provided they satisfy the qualifying conditions.
