Dáil Éireann Debate, Thursday - 28 October 2004
252 Mr. Connaughton asked the Minister for Social and Family Affairs if his attention has been drawn to the inequity caused by the introduction of the reduced old age contributory pension; and if he will make a statement on the matter. [26440/04]
Amharc ar fhreagraTo qualify for an old age contributory pension, it is necessary for a person to have paid social insurance contributions, at an appropriate rate, over an extended period. The rate structure is designed to enable as many as possible to receive pensions, while at the same time giving appropriate recognition to the different levels of contribution which people have made to the social insurance fund.
In this regard, the Government has introduced a number of measures designed to make qualification for old age contributory pensions easier for people with reduced or broken social insurance records. In 1997, the average yearly number of contributions required for a minimum pension was reduced from 20 to ten. Pro rata pensions are also available for people with insurance contributions at different rates or from other EU countries or countries with whom Ireland has signed a bilateral agreement. In addition, special pensions were introduced for those with pre-1953 contributions and for the self-employed who were already over 56 years of age in 1988 when compulsory social insurance was introduced for that group.
Rather than creating inequities, the measures introduced, including the creation of half-rate pensions, have enabled many people, who up to 1997 would not have qualified for a payment, to qualify. The pensions being received by those on reduced rate or pro-rata pensions represent a very good return for the contributions paid. All persons are entitled to an old age non-contributory pension, subject to a means test.
