Vol. 558 No. 5
352 Mr. Durkan asked the Minister for Social and Family Affairs if she will extend pro rata old age pension payments to all contributors in line with their contributions; and if she will make a statement on the matter. [25132/02]
In order to qualify for the maximum rate of the old age contributory pension a person must, amongst other qualifying conditions, achieve a yearly average of at least 48 contributions paid or credited on their social insurance record. Reduced pensions are paid to those with yearly averages as low as ten contributions. Standard pensions are paid at 98%, 75% and 50% of the maximum rate depending on the average number of contributions paid or credited. This rates structure is of particular benefit to those with less than complete insurance records.
In 2000 the Department published a review of the qualifying conditions for the old age contributory and retirement pension phase 1. This report proposed, amongst other things, that consideration be given to changing the basis of assessment for old age contributory and retirement pensions from the current system of average contributions to one based on total contributions paid or credited.
Phase 2 of this report is at an advanced stage of preparation and it is hoped to publish it as a discussion document early in 2003. The report will examine the implications of a system of assessment based on total contributions and outline options for such a system, taking account of the developments in the social insurance system which have resulted in considerably extended coverage of the workforce by the system.
Changes to the current rate and contribution structure will be considered in the light of this review.
353 Mr. Durkan asked the Minister for Social and Family Affairs the steps she will take to expedite the process in respect of applications for various pension or other payments which comprise contributions made outside this jurisdiction; if she will review the bilateral agreements to ensure that all applications are processed within a reasonable time; and if she will make a statement on the matter. [25133/02]
Pension applications based on a combination of Irish insurance contributions and contributions from another EU member state or a country with which Ireland has a bilateral agreement take longer than normal to process for a variety of reasons. The cases are complex and involve checking insurance records from various sources. Cases where employment contributions have been made outside of EU countries entitlement may have to be tested under more than one agreement.
Everything possible is being done to process these applications quickly. Additional resources have been applied to this work as circumstances and demands on other fronts allow. In all cases the over-riding consideration is to ensure that customers receive their correct entitlement and decisions cannot be taken until all appropriate information is received.
Following a review of the implementation of EU and bilateral arrangements carried out by my Department last year, the institutions in the other countries have been requested to expedite insurance records for the cases in question as quickly as possible. Officials from my Department also recently visited the UK social security authorities to discuss ways in which the current process could be improved upon.
I can assure the Deputy that the delay in processing applications will not result in any losses to pensioners who are awarded pro rata pensions. Their claims will be backdated in accordance with the standard provisions governing the backdating pension claims.
