Vol. 516 No. 6
336 Mr. Ring asked the Minister for Social, Community and Family Affairs if he will increase existing old age contributory pensions with the £48 contributory pension based on pre-1953 contributions rather than replacing existing pension with this amount. [8957/00]
The special measure which I have introduced in the Social Welfare Bill, 2000, is targeted at a specific group – namely those people who had paid contributions prior to 1953 but failed to qualify for an old age contributory pension due to the operation of the yearly average test.
The measure is designed to give further recognition to contributions paid prior to 1953, which may, at present, be used to satisfy two of the three qualifying contribution conditions for the old age contributory pension but cannot be used for the yearly average test as they contain no pension element.
The Bill, therefore, provides for the introduction, from next May, of a special, flat-rate old age contributory pension, payable at 50% of the maximum personal rate, to any person who became insurably employed prior to 1953 and who, due to the yearly average rule, failed to qualify for pension or qualified for a pension at less than 50%, i.e. £48 per week from May, of the standard maximum rate. To qualify, a person must have paid, at least, 260 contributions which may comprise all pre-53 contributions or a combination of pre and post 1953 insurance.
