Vol. 550 No. 4
535 Mr. Ring asked the Minister for Social, Community and Family Affairs his views on whether people who paid a class B contribution stamp for over a period of ten years or more should qualify for a contributory old age pension; the amount this inclusion would cost; the number of people who have been refused a contributory pension in the past five years, for each year, based on them paying a class B stamp; and if he will make a statement on the matter. [8694/02]
To qualify for old age contributory and retirement pensions a person must, among other conditions, have paid social insurance at an appropriate rate. Social insurance at the modified rate paid by many public servants does not provide cover for these pensions.
Historically, most public servants were excluded from full social insurance cover because it was considered that they had provision within the terms and conditions of their public sector employment for adequate cover for contingencies such as sickness or old age and that the risk of unemployment was not a factor in their case. Full PRSI coverage was extended to new entrants to the public service in 1995 with consequent changes in the occupational pension arrangements. All other public servants continue to pay the modified rate of social insurance which does not give coverage for old age contributory or retirement pensions.
It is not possible to say how many people who paid modified rate insurance are refused pension each year. However, it is thought that the number refused is small as, generally speaking, the people concerned do not submit applications.
