Dáil Éireann díospóireacht -
Wednesday, 1 Mar 2000

Vol. 515 No. 4

Written Answers. - Pension Provisions.

Seán Ryan

Ceist:

43 Mr. S. Ryan asked the Minister for Social, Community and Family Affairs if he will report on the review of qualifying conditions, including the total contributions approach, for retirement and old age contributory pensions. [6122/00]

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

The final report on the first phase of the review of the qualifying conditions for the old age contributory and retirement pensions is nearing completion and will be presented to me very shortly. As I indicated in my budget speech, the review is looking closely at the operation of the current yearly average test and the implications of moving to a total contributions approach, which many people consider would be a more equitable approach. I will report back to the House in due course when Government has considered the report.

In the meantime, I have already introduced two significant pension-related provisions in this year's Social Welfare Bill. The first relates to significant improvements in the current structure of the rates bands for the retirement and old age contributory pensions. From next May, some 38,000 pensioners who are in receipt of reduced-rate, standard pensions will receive increases over and above what was announced on budget day.

I am addressing certain anomalies in the qualifying conditions for the retirement and old age contributory pensions. Certain people who had paid contributions prior to 1953 failed to qualify for these pensions as these contributions are not taken into account for the yearly average test. From May, these people may qualify for a special old age contributory pension at 50% of the maximum personal rate if they have, at least, five years, or 260, social insurance contributions paid under the national health insurance Acts or a combination of pre and post 1953 insurance. Some 3,000 people are expected to benefit under this measure.