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Dáil Éireann díospóireacht -
Tuesday, 26 May 1998

Vol. 491 No. 3

Written Answers. - Pension Provisions.

Paul McGrath

Ceist:

366 Mr. McGrath asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that PRSI contributions paid prior to 1953 are not recognised by his Department for pension purposes; the reason these contributions are not recognised; and if he will make a statement on the matter. [11867/98]

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 effect from 21 November 1997. To qualify, a person with a yearly average of between ten and 19 must have 260 rather than 156 paid contributions.

Prior to 1953 three different types of contributions were payable — national health insurance, widow's and orphans 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, 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 in the first paragraph above, but cannot be used in calculating the yearly average.

Ivan Yates

Ceist:

367 Mr. Yates asked the Minister for Social, Community and Family Affairs if a person (details supplied) in County Wexford will be able to retain his non-contributory old age pension in view of the fact that his actual investment income is a lot less than what has been assessed. [11868/98]

The person concerned currently receives a reduced rate old age non-contributory pension of £65.50 per week, based on means of £13.50 primarily derived from share investments. He is also in receipt of a living alone allowance of £6 per week and a fuel allowance of £5 per week from mid-October to mid-April.

On 6 March 1998 the person concerned requested a review of his entitlement to pension on the grounds that his circumstances had changed. Following this review, he was assessed with weekly means of £223.89, derived mainly from shares and some other savings. As this calculated value exceeds the statutory limit of £70 per week for entitlement to pension, he is no longer entitled to an old age non-contributory pension. The capital value of this shares and other capital held and increased from £6,785.64 in November 1996 to £89,600.76 by April 1998. The method of assessment of means from capital is specified in the Social Welfare Acts. Under the assessment provisions, the first £2,000 of capital is disregarded, the next £20,000 is assessed at 7.5 per cent of the capital value and the balance is assessed at 15 per cent in order to determine the yearly value of savings and investments, and hence the weekly means.

As the person concerned is disputing the facts used as the basis of means assessment, the matter has been referred back to a local officer of my Department for clarification with him. On receipt of the local officer's report a decision will be made and the person concerned will be notified of the outcome without delay. However, even on the basis of the lower share amount claimed by the person concerned, his net weekly means are likely to remain over the statutory limit for pension entitlement.

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