Dáil Éireann Debate, Wednesday - 21 April 2021
1156. Deputy Robert Troy asked the Minister for Social Protection if entitlement to a State pension through the ten year rule can be re-examined in cases in which an applicant has previous contributions in the UK which could be taken into account. [19607/21]
View answerThe State pension (contributory) is a PRSI-based pension, financed by contributions made by current workers and their employers, and paid to pensioners, at a rate based upon their PRSI record when working. In general to qualify for the State pension (contributory) a person must have at least 520 paid contributions and satisfy a yearly average test (a yearly average of 48 contributions paid and/or credited is required for a maximum rate pension). There are no plans to remove this requirement.
Where an applicant was employed in another EU Member State, or in a country with which Ireland has a bilateral social security agreement, their insured periods in those countries may be combined with their Irish insurance to assess their entitlement to a pro-rata State pension (contributory). EU legislation and bilateral agreements provide that comparative pension assessments for standard-rate State pension (contributory) under Irish legislation alone, and for pro-rata State pension (contributory) under EU or bilateral agreement provisions, be undertaken and whichever is the most financially beneficial pension entitlement for that pensioner is awarded to them.
The rate of entitlement is based on the proportion of Irish full-rate social insurance contributions to the person’s total combined Irish and EU social insurance contributions. The greater the number of Irish contributions paid by a person, the higher their weekly rate of EU pro-rata State pension entitlement. Conversely, a greater amount of full-rate EU contributions would yield a lower rate of pro-rata pension. Entitlement to pension calculation in another jurisdiction is a matter for the pension authorities in those countries.
It should be noted that if a person does not satisfy the conditionality to qualify for State pension (contributory), they may qualify for the means-tested State pension (non-contributory), the maximum rate of which is over 95% that of the maximum rate of the State pension (contributory). Alternatively, if their spouse is a State pensioner and they have significant household means, their most beneficial payment may be an Increase for a Qualified Adult, based on their personal means, and amounting to up to 90% of a full contributory pension.
I hope this clarifies the matter for the Deputy.
