Dáil Éireann Debate, Thursday - 23 July 2020
172. Deputy Fergus O'Dowd asked the Minister for Employment Affairs and Social Protection if she will address matters raised in correspondence from a person (details supplied) regarding split EU pensions; and if she will make a statement on the matter. [17736/20]
Amharc ar fhreagraThe person concerned applied for State pension (contributory) on 2 October 2018, in advance of reaching pension age in June 2019. According to the records of my Department, they have a total of 389 paid full-rate Irish social insurance contributions. Since their contributions fall short of the requisite 520 paid full-rate contributions, they do not qualify for standard State pension (contributory) based solely on their Irish social insurance record.
Under European Union regulations, the insurance records of other Member States can be combined to satisfy the 520-contribution condition and give entitlement to a proportional or pro rata pension. The person’s Irish and EU (German and UK) contributions were combined to establish their entitlement to an EU pro rata State pension (contributory). They have 2,209 contributions and credits, composed of 389 Irish paid full-rate contributions, 36 Irish credited contributions, and 1,784 EU contributions.
The rate of entitlement is based on the proportion of Irish full-rate social insurance contributions to the person’s total combined Irish and EU social insurance contributions. The greater the number of Irish contributions paid by a person, the higher their weekly rate of EU pro rata State pension entitlement. This is published on the gov.ie website. Conversely, a greater amount of full-rate EU contributions would yield a lower rate of pro rata pension.
The person’s pension entitlement has been calculated correctly under the provisions of both Irish and European Union legislation. How their entitlements to pensions in Germany and the UK are calculated is a matter for the pension authorities in those countries.
The person concerned qualified for an EU pro rata State pension (contributory) at the current weekly rate of €47.80 and was notified in writing of this decision on 29 April 2019. They were provided with a copy of their social insurance record on which the decision was based. The person appealed this decision to the independent Social Welfare Appeals Office. They will be notified in writing of the outcome of the Appeals Officer's review.
Social security provisions have existed in EU law for more than 30 years, and are contained in Regulations (EC) No 883/2004 and 987/2009. As such, Ireland and other EU Member States are bound to abide by these regulations as they are applied to pension payments. Social insurance contributions made in other EU countries may be used to determine eligibility for contributory pensions, but cannot be used to increase the rate of payment. Any changes to this system would have a significant impact on the Social Insurance Fund and consequently the Exchequer.
While the State pension non-contributory is not payable to a person residing outside of the state, a customer can go abroad in exceptional circumstances for a limited period. The Department will review their entitlement when they return.
I hope this clarifies the position for the Deputy.
