Self-employed to benefit from move on pro-rata pensions

The Government is to introduce pro-rata pensions for self-employed people who narrowly failed to qualify for an old age contributory…

The Government is to introduce pro-rata pensions for self-employed people who narrowly failed to qualify for an old age contributory pension 10 years ago.

Up to 8,000 pensioners and their 2,000 "qualified adults" will benefit from the measure, aimed at the self-employed who were 56 when social insurance was extended to the self-employed in 1988.

The issue was raised in a two-day Fine Gael Private Members' Motion calling for the introduction of such a pro-rata pension. Mr Jim O'Keeffe, the party's spokesman on social affairs, said no transitional arrangements were put in place for the self-employed who were over 56 in April 1988.

"They were forced to contribute to a fund but were unable to qualify for a contributory pension on reaching the age of 66."

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The Minister for Social, Community and Family Affairs, Mr Ahern, who had indicated last month he would be introducing the pro-rata pensions, said the full-year cost would be £18 million.