Vol. 557 No. 4
485 Mr. Naughten asked the Minister for Social and Family Affairs if she will examine the feasibility of giving every old age pensioner over 70 years of age a non-contributory pension regardless of means; the financial cost of introducing such a measure; and if she will make a statement on the matter. [22228/02]
Social welfare old age pensions comprise two types, contributory pensions which are based on social insurance contributions and non-contributory pensions which are based on a means test. It has been government policy for many years to increase the numbers with individual pension entitlements based on social insurance. In this regard significant progress has been made by extending social insurance coverage, easing qualifying conditions for contributory pensions and by the introduction of special pensions such as the pre-53 pension, special pension for self-employed and pro-rata pensions for those with mixed insurance. The old age non-contributory pension, OANCP, is a social assistance scheme which is designed to provide financial support for older people who do not qualify for one of the contributory pension schemes. In common with other social assistance schemes, the OANCP features a means test which is intended to ensure that available resources are targeted at those who are most in need.
There are approximately 43,000 people aged 70 or over who are not in receipt of a social welfare payment. These would include former public servants, self-employed and others who do not have the necessary social insurance contributions for a contributory pension but whose means are such that they cannot satisfy a means test. The cost of a pension for this group at the maximum rate of the old age non-contributory pension would be €304 million per annum. In addition, those over 70 years of age who are already receiving pensions at reduced rates or are being paid for as qualified adults would need to have their payments increased. An age breakdown of those receiving such payments is not readily available so it is not possible to estimate the cost of this aspect of the proposal.
The final report of the National Pensions Board, published in 1993, examined the option of adopting a universal pension scheme but concluded that the existing system of a social insurance scheme supported by a means tested scheme was the most appropriate one. The issues concerning provision of social welfare pensions are being examined in the context of the phase 2 report of the review of the qualifying conditions for old age contributory and retirement pensions. The review is at an advanced stage of preparation and it is hoped to publish it as a discussion document early in 2003.
