Bernard J. Durkan
Ceist:307 Mr. Durkan asked the Minister for Social, Community and Family Affairs if he will consider improvements regarding pro rata pensions; and if he will make a statement on the matter. [31930/01]
Written Answers. - Pension Provisions.
To qualify for a full rate old age (contributory) or retirement pension a person must have achieved a minimum number of paid contributions, at the appropriate rate, and a yearly average of at least 48 contributions over their working lives. Those who do not have sufficient contributions for a full rate payment may receive a reduced rate or pro rata pension. At present a person may receive a 50% pension with a yearly average of 10 contributions.
In the context of a contributory pension scheme I consider it important that the benefits paid to a person reflect the contribution and commitment he or she has made to the social insurance fund. I am satisfied that when compared to the level of contributions required for a full rate payment the pensions being received by those on reduced rate or pro rata pensions represent very good value for their contributions.
Those receiving reduced rate or pro rata pensions will receive increases arising from the budget which reflect the rate at which they are paid. For instance, people receiving a 50% pension will receive 50% of the increase awarded in full rate cases.