Dáil Éireann díospóireacht -
Tuesday, 6 Feb 1996

Vol. 461 No. 1

Written Answers - Social Welfare Benefits.

Jim Mitchell

Ceist:

225 Mr. J. Mitchell asked the Minister for Social Welfare if a person (details supplied) in Dublin 3 is entitled either to a contributory old age pension or to a refund of social insurance contributions; if not, the reasons therefor; and if he will make a statement on the matter. [2584/96]

Minister for Social Welfare (Prionsias De Rossa)

The person concerned is not entitled to either an old age contributory pension or a refund of social insurance contributions under current arrangements.

To qualify for either an old age contributory pension or a retirement pension, a person must have entered social insurance at least 10 years before pension age, must have at least 156 contributions paid and must have a yearly average of not less than 20 relevant contributions (for old age contributory pensions) or 24 contributions (for retirement pension) paid or credited from 1953, or from the date of entry into insurance (whichever is the later) up to the end of the last complete contribution year before reaching pension age.

Under the legislation, the period over which the yearly contribution average for the person concerned was calculated for pension purposes was from 1953 to 1995. The records of the Department show that he had a total of 364 reckonable social insurance contributions in that period, which is equivalent to a yearly average of only 8. This is not sufficient to qualify him for an old age contributory pension.

His prior insurance from 1984 at the special class K PRSI rate, covering the health, employment and training levies only, is not reckonable for pension purposes.

A person who fails to qualify for either an old age contributory or non-contributory pension can be entitled to a refund of the old age pension element of any contributions paid, provided he or she aged 56 or over when entering social insurance for the first time. These arrangements apply equally to employed and self-employed persons. As the person concerned entered social insurance for the first time before he was 56 years of age, taking his pre-1953 National Health insurance into account, he does not qualify for a refund of contributions under existing arrangements.

The regulations dealing with contribution refunds are under review in my Department at present. The review is at an advanced stage and will be completed very shortly. Situations such as that of the person concerned, where refunds are precluded when pre-1993 insurance is taken into account, are being reconsidered as part of this review. The person concerned may be eligible for an old age non-contributory pension. An application form for this pension issued to him on 5 February 1996. On receipt of a completed application form, his entitlement will be examined and he will be notified of the outcome without delay.