Vol. 541 No. 2
815 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs his views on whether it is fair that the rate of pension paid to self-employed applicants for self-employed pensions, who paid the full ten years of contributions, is reduced on the basis that at some time in the past they may have recorded one or more contributions while in employment; and if he will take steps to amend the regulations to remove this anomaly. [21934/01]
In order to qualify for an old age (contributory) pension a person must have entered social insurance at least ten years before reaching pension age, have a minimum number of paid contributions on their record and have a yearly average of at least ten contributions paid or credited from 1953, when the unified system of social insurance came into effect, or the date of entry into social insurance, if later. A yearly average of 48 contributions is required for a full rate pension.
In general self employed contributors have their average contributions for pension purposes assessed on the same basis as other contributors. However, special arrangements were put in place to cater for those who were already self employed when compulsory social insurance was introduced for this group in 1988. A self-employed person who became a contributor on 6 April 1988 and who at any time prior to that date was an employed contributor can have their earlier record disregarded if it is to their advantage. Persons who became self employed contributors after 6 April 1988 have their average contributions assessed in the normal way.
The qualifying conditions for the old age (contributory) pension are at present being reviewed. One of the key issues being addressed as part of this review involves the possibility of a change in the method of assessment from the current one based on average contributions to a system based on the total number of contributions paid-credited over a person's working life. This represents a very significant change in approach for overall pensions policy but it is considered that such a system would be more transparent, simpler and more easily understood by claimants.
A working group comprising officials of the Department and the Department of Finance is at present undertaking this review and it is expected that the working group's report will be available for consideration later this year.
