Eligibility for the State (Contributory) Pension is determined by an individuals PRSI contribution history. The standard qualifying conditions for contributory pensions require a person to enter insurance 10 years prior to pension age, pay a minimum of 260 contributions at the correct rate, and achieve a yearly average of at least 10 contributions on their record from the time that they enter insurance until they reach pension age. As signalled in 2002 and provided in the SW Acts, the minimum number of contributions required will increase from 260 to 510 from 2012.
Individuals in receipt of Disability Allowance are only eligible to apply for the State (Contributory) Pension, at age 66, if they started paying social insurance contributions before reaching the age of 56. They are not liable to pay PRSI contributions but may be eligible for credited social insurance contributions if they have paid at least one PRSI contribution and have paid or credited contributions in either of the last two income tax years before a claim was made for Disability Allowance. Credited contributions are only awarded to those people who were employed contributors, as opposed to self-employed contributors, reflecting differences between the nature of employment and self-employment.
Alternatively, individuals may be eligible to pay voluntary contributions in order to maintain their contribution record and subsequent entitlement to the State (Contributory) Pension. In order to be admitted to the voluntary contributions scheme, a person must have a minimum of 260 weeks of PRSI paid in either employment or self-employment and apply within 12 months of their past paid contribution. The requirement to have 260 paid contributions to gain access to the scheme is essential in that it ensures that the requisite number of paid contributions required is in place to establish a contributory pension entitlement.