A person is required to have 520 contributions paid to qualify for the State Pension (contributory) or to to be eligible to make voluntary contributions to maintain their social insurance record. It is reasonable to require people who seek a contributory pension to have made at least 10 years' paid contributions into the Social Insurance Fund which finances it, over 50 years of working age life.
For those who do not qualify for the State Pension (contributory) (SPC), there are other state pension payments available. Notably, they may qualify for the State Pension (non-contributory) which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the SPC. If their spouse has a contributory pension, they may qualify for an increase for a qualified adult (based on their own means), amounting up to 90% of a full rate SPC pension.
Consequently, if a person doesn’t receive a State pension after pension age, they have both significant means and have made little or no contribution to the Social Insurance Fund. Introducing a pension entitlement for such people would reduce the resources available for other pensioners, most of whom have less means than they do, and have contributed significantly more to the Social Insurance Fund.
It is important to note that the Social Insurance Fund works on the basis of contributions that may deliver entitlements on the one hand and social solidarity which results in the system being one of redistribution on the other. While entitlements to Social Insurance payments are built up by individual contributors for use in the event of various contingencies arising during their working years and also after retirement, it is possible that a person may never qualify for any of these (as none of the contingencies may arise in their lifetime). Accordingly, the matter of refunds of contributions does not arise.
I hope this clarifies the matter for the Deputy.
