Dáil Éireann díospóireacht -
Thursday, 8 Mar 2001

Vol. 532 No. 3

Written Answers. - Social Welfare Benefits.

Róisín Shortall

Ceist:

128 Ms Shortall asked the Minister for Social, Community and Family Affairs if he will review the pro rata rates for the contributory old age pension in view of the discrepancy and bureaucracy the rates in 2001 will create for persons with fewer than an average of 20 credits who, following the improvements in the pro rata rates in 2000 transferred from a qualified adult allowance to a pro rata pension in their own right but following April 2001 will be very marginally better off transferring back to a qualified adult allowance, as in the case of a person (details supplied) in Dublin 11; if he will provide an explanation of his Department's future policy in this regard; and if he will make a statement on the matter. [7324/01]

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

In budget 2001, I announced improvements in the qualified adult allowance for those over 66 years of age which will see the maximum rate of this allowance increasing to the full old age non-contributory pension rate over a number of budgets. A major step towards this objective was taken in budget 2001 by providing an increase of £15 per week in the full rate QAA. Following the report of the PPF working group which is currently examining the issues surrounding administrative individualisation, arrangements will be put in place so that part of the pension can be paid directly to the qualified adult.

On foot of the increase in the QAA the full rate allowance will increase to £79.60 per week from April 2001. This is marginally better than some reduced rate pensions, particularly those based on an average of 15 to 19 contributions. However, as the commitment to increase QAAs to the same level as the old age pension rate is implemented the rates will diverge. In these circumstances, a person being paid a reduced rate pension may be better off being classed as a qualified adult where their spouse-partner are receiving a full rate old age contributory or retirement pension.

It appears that only a small number of cases, of whom the person concerned is one, are affected and my Department will be in touch with these directly to advise them of the position and their options. Persons will receive the more beneficial payment.

Róisín Shortall

Ceist:

129 Ms Shortall asked the Minister for Social, Community and Family Affairs the reasons social welfare changes in budget 2001 did not allow pensioners who were employed before and after 1953 and who qualify for a pro rata pension to use pre-1953 credits in the calculation of their pension entitlement; the further reasons pre-1953 credits may not be counted to allow pensioners in receipt of a pro rata pension to progress to a higher pro-rata rate; and if he will make a statement on the matter. [7325/01]

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

The Government is committed to ensuring the widest possible coverage for old age contributory pensions. The measure introduced from May 2000 is designed to enable a particular group of people to receive a special pension. This is achieved by affording additional recognition to social insurance contributions paid prior to 1953.

To qualify a person must have paid at least 260 contributions which may comprise all pre-1953 contributions or a combination of pre and post-1953 insurance. The pension is paid at 50% of the maximum personal rate which from April this year will be £53 per week. To date approximately 13,000 people have benefited from the measure including over 8,000 people who had been in receipt of a pro rata pension at less than 50% of the personal rate and for whom the new pension is more beneficial.

Contributions made prior to 1953 are still not counted for the purposes of satisfying the average contributions test. Consequently pensioners who were already in receipt of a pension of at least 50% of the personal rate may not improve their position arising from this measure. Any further improvements in this area must be viewed in a budgetary context.