In order to qualify for a State pension contributory, a person must satisfy a number of qualifying conditions which include:
- commencing insurable employment at least 10 years before pension age;
- payment of a minimum of 520 qualifying contributions; and
- achieving a yearly average of at least 10 qualifying contributions, paid or credited, over their working life.
In April 2012, the qualifying conditions for State pension increased from 260 paid PRSI contributions to 520 paid contributions. This provision was legislated for very far in advance in the Social Welfare Act, 1997. This change has been notified in all social welfare pension publications since 1997. It has also been highlighted in the recent information campaign concerning reform measures to the State pension.
The State pension is a very valuable asset and it is important, for sustainability reasons, that those who receive it have made a significant contribution towards it during a working life. The means-tested State pension (non-contributory) may be available to people on low incomes who have not paid sufficient PRSI contributions to qualify for the contributory pension.