Mary Flaherty
Ceist:4 Miss Flaherty asked the Minister for Social Welfare if he will outline, from data he has obtained, the number of persons who might qualify for a pro rata old age pension; and the cost of such claims.
Ceisteanna — Questions. Oral Answers. - Social Welfare Benefits.
Eamon Gilmore
Ceist:20 Mr. Gilmore asked the Minister for Social Welfare if his attention has been drawn to the anomalies created by the averaging system with regard to insurance payments as a result of which a person with only a few years' contributions can get a full old age pension, but a person who has paid for 20 years, intermittently, may not qualify at all because of averaging; if he intends to take any steps to deal with this situation; and if he will make a statement on the matter.
Richard Bruton
Ceist:25 Mr. R. Bruton asked the Minister for Social Welfare if he has reviewed the position of CIE bus inspectors who cannot obtain pro rata old age pensions for their PRSI contributions under the current rates.
Michael Bell
Ceist:35 Mr. Bell asked the Minister for Social Welfare if he has received the report of the National Pensions Board regarding CIE retired workers with mixed social insurance records who have been unjustly denied the pro rata age pensions; if he will extend the pro rata pensions to mixed insurance contributions on the same terms and conditions as was applied to the intermittent contributors; the reason for the delay in introducing this extension; and if he will make a statement on the matter.
Bernard J. Durkan
Ceist:47 Mr. Durkan asked the Minister for Social Welfare if he intends to amend the 1988 legislation whereby pensioners who re-entered insurable employment after 1 April 1974 are entitled to payment of either contributory old age pension or refund of the pension element of their social welfare contributions, with particular reference to a person (details supplied) in County Kildare; and if he will make a statement on the matter.
Mary Flaherty
Ceist:48 Miss Flaherty asked the Minister for Social Welfare whether Ireland is alone among the EC partners in not awarding pro rata old age pension; and if this matter will be harmonised in the context of 1992.
Dermot Fitzpatrick
Ceist:49 Mr. Fitzpatrick asked the Minister for Social Welfare whether pensions will be paid to people affected by mixed insurance on a pro rata basis; and, if so, when this will come into operation.
I propose to take Questions Nos. 4, 20, 25, 35, 47, 48 and 49 together. Entitlement to a retirement or old age contributory pension is conditional on having 156 paid contributions, having entered insurance at least ten years before pension age and having a minimum average of contributions paid or credited from date of entry to pension age. The minimum average required is 24 for the retirement pension and 20 for the old age contributory pension.
The requirement to have a lifetime average of contributions for entitlement to pension is an accepted feature of pension schemes. In the Irish system, a person can qualify for a pension after ten years in the system and with four full years paid contributions. This ten year condition was introduced originally in order to enable insured persons to qualify for pension after a reasonably short length of time following the introduction of the old age (contributory) pension scheme in 1961. The fact that the conditions for entitlement have not been fundamentally changed in the meantime has given rise to the anomalous situations referred to.
The main anomaly arises in that those who enter insurance early in their careers and who subsequently have gaps in their insurance records may not qualify for a pension despite having a higher number of paid contributions than persons who enter the scheme late. Gaps in insurance can arise as a result, for example, of moving from fully insurable employment to employment insurable at the modified rate in the public service. CIE bus inspectors are one of the groups affected in this way.
Gaps in insurance could also arise in the case of persons moving out of insurance due to the operation of the remuneration limit which applied up to 1974. I made specific arrangements under the Social Welfare Act, 1988, for the payment of pro rata pensions to the limited number of persons in this situation.
The problem of people moving from full to modified social insurance is, however, an ongoing feature of the system and requires more fundamental changes to the contribution conditions for pension entitlement. This issue is currently being considered by the National Pensions Board. In addition, I arranged for my Department to carry out a detailed study of the contribution conditions for pension entitlements. This study will be completed shortly. A survey has been carried out to estimate the numbers who would be affected by any changes in contribution conditions and the costs involved. On the basis of the present examination I expect to be in a position to bring forward proposals to Government on the matter shortly. It would be my intension that contributors will get credit in terms of pension payments for periods of insurance they have completed at any time, subject to appropriate minima. I will also be taking into account the arrangements which apply under EC Regulations to persons with a mixture of insurance in a number of different EC member states.
Deputy Flaherty's question must be very brief because the time available to us for dealing with Priority Questions is exhausted.
I welcome the indication from the Minister that he is ready to make a move to bring some proposal to Government in this area. We have been badgering the Minister to make such a move for some time. This is an area on which I, like most other Deputies, have enormous files. On Question No. 48, are we the only EC country that does not have pro rata pensions? Is it not a fact that many people in this country are in receipt of pro rata pensions from the lady who is retiring today and that they do not receive them here although they have made even greater contributions here? They are in receipt of such pensions from Britain following five, ten or 20 years' employment there.
Brevity.
There are different conditions and systems in different countries, but the question of pro rata pensions is something I will look at.
We come now to deal with other questions. Question No. 6 please.
Austin Deasy
Ceist:6 Mr. Deasy asked the Minister for Social Welfare the reason a person (details supplied) in County Waterford has not received payment of unmarried mother's allowance; and if he will make a statement on the matter.
The claim of the person concerned for payment of unmarried mother's allowance was disallowed on 12 October 1990. This decision was taken as, despite her special and unusual circumstances, it was held by a deciding officer that she did not satisfy a basic condition set out in the Social Welfare Acts governing the scheme. It was considered that she did not have a qualified child resident with her while she was undergoing an indefinite and lenghty period of hospitalisation.
However, in the special circumstances of her particular case and, because she had been in receipt of unmarried mother's allowance before going to England for a period of time, her claim has been reviewed and she has been awarded unmarried mother's allowance with effect from 13 September, the date of her reapplication for this allowance.
It is amazing what a Parliamentary Question can do. When I made representations on behalf of this woman I was refused point blank any information by the officials of the Department. I am glad that the Minister has relented. However, it has taken a Parliamentary Question to do it. The woman in question who was hospitalised is a multiple sclerosis victim——
Ceisteanna.
I am glad that the Minister has given way and has cut the red tape which seemed to eliminate this woman from receiving that allowance.
As the Deputy said, there were very special circumstances in this case. Perhaps this highlights the value of Parliamentary Questions, which I also regard as very important.