Dáil Éireann Debate, Tuesday - 28 March 2023
443. Deputy Paul Kehoe asked the Minister for Social Protection if there is any mechanism by which a person who has been refused a full State pension (contributory) due to a deficit in contributions can supplement contributions after the fact to become eligible for a full pension; and if she will make a statement on the matter. [14791/23]
View answerPension entitlement can only be assessed on the basis of the eligibility conditions applicable on the date an individual reaches State Pension age. Currently, a person who has 2080 paid or credited contributions, or who has in excess of 520 contributions with a yearly average of 48 or more contributions since they entered the social insurance system, would qualify for the full rate State Pension (Contributory). A person who does not meet the requirements for a full rate pension may be paid a lower rate commensurate with their social insurance record where they exceed the minimum contribution threshold.
My Department has a voluntary contribution scheme, the purpose of which is to provide persons who were, but are no longer, compulsorily insured under social insurance with the opportunity to pay contributions directly to my Department.
The scheme’s entry criteria require applicants to have at least 520 social insurance contributions paid from either employment or self-employment. Furthermore, an application must be made within 60 months (5 years) from the end of the contribution year during which the applicant last paid a compulsory social insurance contribution or was last awarded a credited employment contribution. Voluntary contributions can only be made before a person reaches State Pension Age.
Last September, I announced a series of landmark reforms to the State Pension system. The measures are in response to the Pensions Commission’s recommendations and represent the biggest ever structural reform of the Irish State Pension system.
Among the measures agreed is the introduction of a system to allow people to choose to defer access to the State Pension (Contributory) up to age 70 and receive a cost neutral actuarial increase in their State Pension payment. This system also provides for a person to continue to pay social insurance contributions past State Pension age to improve their social insurance record for State Pension (Contributory) purposes. These PRSI contributions may enable individuals without a full contribution record (and who have deferred access to the State Pension) to become entitled to the State Pension (Contributory), or increase the pension rate of payment, as a consequence of the additional paid contributions. People will still be able to retire at 66 and draw-down their pension in the same way as they can today. These measures will become effective from January 2024.
I hope this clarifies the matter for the Deputy.
