Dáil Éireann díospóireacht -
Tuesday, 4 May 1993

Vol. 430 No. 2

Written Answers. - Social Welfare Insurance.

Bernard Allen

Ceist:

125 Mr. Allen asked the Minister for Social Welfare the steps, if any, he proposes to take in relation to the Ombudsman's decision in making a submission to the Commission on Social Welfare suggesting that it was inequitable that people who had paid more social insurance contributions should be treated less favourably than those who had paid less contributions over a shorter period.

Minister for Social Welfare (Dr. Woods)

The submission in question was made in 1984 and concerned the operation of the contribution conditions for old age contributory pension. 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 from January, 1953 when the unified social insurance system came into effect, or from the time they started insurable employment, if later. People who have gaps in their insurance record for one reason or another may not be able to meet the contributions' average condition.

In recent years measures have been introduced to assist those categories most affected by gaps in their insurance:

In 1988 special partial old age pensions were introduced for people who became compulsorily insured for pension in 1974 on the abolition of the social insurance remuneration limit but failed to qualify for pension subsequently because of gaps in their insurance record caused by the operation of the limit. Under the arrangements proportionate pensions were granted to such people for contribution averages of between 5 and 20. In 1991pro rata pensions were introduced for people with a mixture of full and modified insurance, the rate of pension payable being in proportion to the periods of insurance completed at the full rate. The 1992 Social Welfare Act made provision for the introduction of an alternative “yearly average” test for entitlement to the maximum rate of old age contributory and retirement pensions. This allows a person to qualify for full pension if he/she has an average of 48 since 6 April, 1979 when the present PRSI system came into operation.

The whole question of contribution conditions for entitlement to pensions is being examined by the National Pensions Board in the context of their final report on a new national pensions system. It is expected that this report will be finalised and submitted shortly. The matter will be considered further in the light of the recommendations contained in the report.