Dáil Éireann díospóireacht -
Tuesday, 13 Oct 1998

Vol. 495 No. 1

Written Answers. - Pension Provisions.

Gay Mitchell

Ceist:

335 Mr. G. Mitchell asked the Minister for Social, Community and Family Affairs if, further to Parliamentary Question No. 607 of the 30 September 1998, he will review the minimum yearly average requirement of ten contributions and ensure that all contributions qualify for the appropriate pro-rata pension (details supplied). [19217/98]

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

As I indicated in my reply to Question No. 607 of 30 September 1998, a minimum yearly average of ten full-rate contributions is required to qualify for the pro-rata contributory pension which was introduced in November 1998.

This is a minimum qualifying condition which applies to all insured people. Its clear purpose is to link entitlement to a pension with a reasonable level of full-rate contributions to the social insurance fund during the course of a person's career. As such, there are no plans to review this requirement.

Michael Moynihan

Ceist:

336 Mr. M. Moynihan asked the Minister for Social, Community and Family Affairs the plans, if any, he has to compensate persons who paid PRSI contributions in the self-employed sector who do not qualify for old age contributory pension in view of the fact that this situation has arisen as a result of the fact they were over the age of 56 when they began paying and the subsequently do not have ten years of contributions paid; and if he will refund the amount of contribution paid or back pay a pro-rata pension. [19221/98]

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

To qualify for the old age contributory pension, a person must, inter alia, have entered insurance at least ten years before pension age. This condition has been a feature of the scheme since its introduction in 1961. The purpose of the condition is to link entitlement to a pension with a reasonable level of contributions to the social insurance fund during the course of a person's career.

As I have stated on a number of occasions, I will continue to ensure the broadest possible contributory pension cover to as many categories as possible. I am fully conversant with the issue in question and would like to reassure the Deputy, and this House, that the matter is receiving my detailed attention. However, I must stress that the cost of paying an old age contributory pension to this group of people would be significant and any proposal in this regard would have to be assessed against other competing demands in the social welfare area.

In relation to refunding contributions paid, I would point out that any self employed person who has contributed and does not qualify for either a contributory or a non-contributory pension may apply for a refund of the pension element — 53 per cent — of his/her PRSI contributions which is payable, with interest. I consider this a fair arrangement.

A non-contributory pension is, of course, available to former self employed people, who have insufficient contributions, in the same way as it is available to every other citizen, resident in the State, subject to a mean test.