Dáil Éireann díospóireacht -
Tuesday, 8 Feb 2000

Vol. 513 No. 6

Written Answers. - Tax and Social Welfare Codes.

John Perry

Ceist:

351 Mr. Perry asked the Minister for Social, Community and Family Affairs the plans, if any, he has in place to introduce amending legislation in respect of the old age contributory pension to alleviate the hardship caused where a person born in February 1932 who reached the age of 56 years in February 1988 does not meet the eligibility for a full contributory pension whereas a person born after April 1932 does; and if he will make a statement on the matter. [3219/00]

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

It is understood the Deputy is referring to the position of people who were aged 56 or over in April 1988 when social insurance for the self-employed was introduced.

One of the qualifying conditions for the old age contributory pension – which applies to all insured people (both employees and the self-employed) – requires a person to have entered social insurance ten years before reaching pension age, which is 66. This condition has been a feature of the scheme since it was introduced in 1961. Its purpose is to ensure that entitlement to the pension is directed to those who have made a reasonable level of contributions to the social insurance fund during the course of their careers.

However, in line with this Government's commitment to extend contributory pensions cover age to people who narrowly failed to qualify for contributory pensions, last April I introduced new pension arrangements for a very specific group of people. These are self-employed people who were 56 years of age or over in April 1988 – when social insurance was extended to the self-employed – and who could not qualify for a pension as they did not satisfy the standard requirement of having entered insurance at least ten years before pension age.

A special old age contributory pension is, therefore, now available to those self employed people who were aged 56 or over in April 1988 and who have, at least, five years contributions paid since then. Payment is at a flat-rate of 50% of the standard maximum rate with equivalent increases for adult and child dependants, where applicable. I consider these new arrangements to be fair reflecting, as they do, a certain consistency of commitment to the social insurance fund over a given period of time.