Dáil Éireann díospóireacht -
Tuesday, 16 Feb 1993

Vol. 426 No. 1

Written Answers. - Old Age Pensions.

Bernard J. Durkan

Ceist:

38 Mr. Durkan asked the Minister for Social Welfare if he will review the entitlement to old age contributory pension of persons who have the necessary yearly average number of contributions to qualify for such pensions if contributions prior to 1953 are included but who do not qualify under current legislation; and if he will make a statement on the matter.

Dermot Ahern

Ceist:

67 Mr. D. Ahern asked the Minister for Social Welfare if he will amend the social welfare regulations to allow old age pensioners utilize their contributions paid before 1953 in order to allow them to qualify for the old age pension which would otherwise be denied them; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

I propose to take Questions Nos. 38 and 67 together.

To qualify for an old age contributory pension a person must have entered insurance at least ten years before reaching pension age, have at least 156 contributions paid and have a yearly average of at least 20 contributions registered since January, 1953 when the unified system of social insurance came into effect or the time they started insurable employment if later.

In this regard it is relevant to point out that prior to 1953 three different types of contributions were payable. These were — national health insurance, widows and orphans pensions and unemployment insurance contributions.

These contributions gave specific entitlement only to the benefits of the schemes under which they were paid.

The old age contributory pension scheme was introduced in 1961. Contributions paid by insured persons prior to 1961 did not contain an element in respect of that pension. However, in order to enable persons reaching pension age at that time to qualify immediately for a contributory pension, contributions paid prior to 1953 were taken into account for the purpose of satisfying the contribution conditions including the average test. These transitional arrangements operated until 1973 that is twenty years after the unified social insurance came into effect. From then contributions paid prior to 1953 were no longer counted for the purposes of satisfying of the yearly average test.

The whole issue of contribution conditions for social insurance pensions is among the issues being addressed by the national pensions board in its final report on a new national pensions system. I expect to receive the board's report later this year and the matter will be considered further in this context.