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Dáil Éireann díospóireacht -
Thursday, 20 Nov 1997

Vol. 483 No. 2

Written Answers. - Pension Provisions.

Seamus Kirk

Ceist:

145 Mr. Kirk asked the Minister for Social, Community and Family Affairs if consideration has been given to pre-1953 social insurance contributions being calculated for old age pension eligibility where there is a minimum shortfall in post-1953 contributions. [19991/97]

To qualify for the old age contributory pension, a person must have entered insurance at least ten years before pension age, have at least 156 contributions paid and have a yearly average of at least 20 contributions, or 24 in the case of the retirement pension, registered since January 1953, when the unified system of social insurance came into effect, or the time they started insurable employment, if later. The yearly average condition will be reduced to ten contributions for the new pro rata old age (contributory) pension from 21 November next.

Prior to 1953 three different types of contributions were payable — national health insurance, widow's and orphan's pension and unemployment insurance contributions. These 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 this pension. However, as a concession and 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 in calculating a person's entitlement to pension. These transitional arrangements operated until 1973. From that date contributions paid prior to 1953 were no longer counted for the purposes of the satisfying of the yearly average test.

However, social insurance paid before 1953 under the national health insurance Acts can be taken into account for old age contributory pension in satisfying the first two conditions, set out in the first paragraph above, but cannot be used in calculating the yearly average.
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