Department details changes to old age pension criteria

Women working in the home, returned emigrants and the self-employed are among the people expected to qualify for old age contributory pension for the first time later this year, under changes in the contribution criteria.

An estimated 8,500 people will benefit immediately when the new pro-rata contributory pension is introduced on November 21st, according to the Department of Social Welfare. The new payment was announced in this year's Budget.

Outlining details of the changes, which include halving the required minimum yearly average of PRSI contributions, the Department yesterday predicted an extra 4,000 first-time qualifiers for contributory pension when the payment is introduced.

A further 4,500 already qualified will get a higher rate from November, while some 1,300 additional people are predicted to benefit every year thereafter.

Under the current system, applicants for the contributory pension require a minimum total of 156 full-rate PRSI contributions over their working life, with a minimum yearly average of 20 contributions, paid or credited. For the new pro-rata payment, the minimum total is increased to 260 contributions, but the yearly average for a minimum-rate pension is halved to 10.

According to the Department, beneficiaries of the new payment will include women who started out in paid employment but have spent long periods outside the paid work force. Returned emigrants who worked here for a short spell before working abroad for a long period are also cited as a group who will benefit.

A third category are those who were in insurable employment for a time but became self-employed long before the introduction of social insurance for the self-employed in 1988.

From November 21st, applicants with an average of between 10 and 14 contributions will qualify for £39 - half the current full rate of contributory pension; while those with between 15 and 19 contributions will get £58.50, three-quarters of the current maximum.

Adult dependant allowances will be paid in full, subject to the income of the spouse or partner. Qualifying applicants will also be eligible for schemes including free TV licences and electricity and telephone allowance, subject to certain conditions.

The Department says it will be writing to pensioners on reduced rate to notify them of possible entitlement to the increased payment. But those not already receiving a pension will have to make their own inquiries.