Dáil Éireann díospóireacht -
Tuesday, 10 Mar 1998

Vol. 488 No. 4

Written Answers - Social Welfare Benefits.

Richard Bruton

Ceist:

244 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs the entitlements covered under the national health and unemployment insurance stamps in the years prior to 1953 and, in particular, the entitlement to widow's, widower's or old age pension. [6190/98]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

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 Widow's and Orphan's Act 1935 provided for a widow's contributory pension from 1936 onwards. Contributions prior to 1953 can be used both to satisfy the 156 paid contributions and the yearly average condition which apply to that scheme. Widower's contributory pension was introduced in 1994 and the qualification conditions are identical to those pertaining to widow's contributory pension.

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 a 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 was reduced to ten contributions for the new pro-rata old age contributory pension which came into force with effect from 21 November last. To qualify for a rate of pension equivalent to 50 per cent to 75 per cent of the maximum rate, a person with a yearly average of between ten and 19 must have 260 rather than 156 paid contributions.

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 satisfying 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 purposes in satisfying the first two conditions, set out above, but cannot be used in calculating the yearly average.