Dáil Éireann Debate, Tuesday - 1 December 2020
510. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which women or men who have insufficient contributions to meet the requirements for qualification for the old age pension are being accommodated; and if she will make a statement on the matter. [40478/20]
Amharc ar fhreagraThe State Pension (Contributory) is a PRSI-based pension, financed by contributions made by current workers and their employers, and paid to pensioners, at a rate based upon their PRSI record when working. A person is required to have a minimum of 520 paid reckonable PRSI contributions in order to qualify for the State Pension (Contributory). As the actuarial value of the State Pension is estimated at over €300,000, it is reasonable to require people claiming a contributory pension to have made at least 10 years of paid contributions over the term of a working life.
Those with few or no PRSI contributions paid over the years may instead qualify for the State Pension (Non-Contributory), which is a means-tested pension, financed by the Exchequer, and paid at up to 95% of the maximum rate of the State Pension (Contributory). There are significant disregards in the household means test for the State Pension (Non-Contributory). Alternatively, if a person's 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 State Pension (Contributory). The most advantageous payment for a pensioner will depend upon their individual circumstances.
The Government approved the establishment of the Commission on Pensions earlier this month, in fulfilment of a Programme for Government commitment. The Commission will examine sustainability and eligibility issues in respect of State pension arrangements and will outline options for the Government to address issues such as qualifying age, contribution rates, total contributions and eligibility requirements. In line with the Programme for Government, the Commission will report to me on its work, findings, options and recommendations by 30th June 2021. The Government will take action having regard to the recommendations of the Commission within six months.
I hope this clarifies the matter for the Deputy.
