S.I. No. 314/1991 - Social Welfare (Old Age (Contributory) Pension and Retirement Pension) Regulations, 1991.

S.I. No. 314 of 1991.

SOCIAL WELFARE (OLD AGE (CONTRIBUTORY) PENSION AND RETIREMENT PENSION) REGULATIONS, 1991.

The Minister for Social Welfare, in exercise of the powers conferred on him by section 3 of the Social Welfare (Consolidation) Act, 1981 (No. 1 of 1981 ), by sections 78 and 83 of that Act (as amended by Part IV of the Social Welfare Act, 1991 (No. 2 of 1991)) and by sections 79 and 84 of that Act (as amended by Part IV of the Social Welfare Act, 1991 and modified by the Social Welfare Act, 1991 (Section 26) Order, 1991 ( S.I. No. 312 of 1991 )), hereby makes the following Regulations:—

PART I. GENERAL.

1 Short title.

1. These Regulations may be cited as the Social Welfare (Old Age (Contributory) Pension and Retirement Pension) Regulations, 1991.

2 Interpretation.

2. In these Regulations—

"the Act of 1981" means the Social Welfare (Consolidation) Act, 1981 ;

"the Act of 1991" means the Social Welfare Act, 1991 ;

"claimant" means a person who has made a claim for an old age (contributory) pension or a retirement pension, as the case may be;

"entry into insurance" has the meaning assigned to it—

( a ) by subsection (4) of section 78 of the Act of 1981, in the case of old age (contributory) pension, and

( b ) by subsection (5) of section 83 of the Act of 1981, in the case of retirement pension;

"National Health Insurance Acts" means the National Health Insurance Acts, 1911 to 1952;

"relevant period", in relation to any claimant, means the period commencing either—

( a ) on the 5th day of January, 1953 in the case the claimant is a man, or

( b ) on the 6th day of July, 1953, in the case the claimant is a woman, or

( c ) at the beginning of the contribution year in which the claimant's entry into insurance occurred (if after the 5th day of January, 1953, in the case of a man or the 6th day of July, 1953, in the case of a woman),

and ending at the end of the last complete contribution year before the date of his attaining pensionable age, or, in the case of retirement pension, the date of his attaining the age of 65 years;

"relevant person" means a person in respect of whom section 27 of the Act of 1991 applies;

"subsection (4) of section 78 of the Act of 1981" means subsection (4) of section 78 of the Act of 1981 (inserted by section 23 of the Act of 1991);

"subsection (5) of section 83 of the Act of 1981" means subsection (5) of section 83 of the Act of 1981 (inserted by section 24 of the Act of 1991).

3 Commencement.

3. These Regulations shall come into operation—

( a ) on the 28th day of November, 1991, in so far as they relate to retirement pension, and

( b ) on the 29th day of November, 1991, in so far as they relate to old age (contributory) pension.

4 Revocation and amendment of regulations.

4. (1) The Social Welfare (Old Age (Contributory) Pension) (Transitional) Regulations, 1960 ( S.I. No. 255 of 1960 ), the Social Welfare (Old Age (Contributory) Pension) (Transitional) (Amendment) Regulations, 1961 ( S.I. No. 138 of 1961 ) and the Social Welfare (Old Age (Contributory) Pension) (Transitional) (Amendment) Regulations, 1963 ( S.I. No. 229 of 1963 ) are hereby revoked.

(2) Each provision of the Social Welfare (Retirement Pension and Invalidity Pension) (Transitional) Regulations, 1970 ( S.I. No. 224 of 1970 ) mentioned in column (1) of the Schedule to these Regulations is hereby amended in the manner specified in column (2) of that Schedule opposite the mention of the provision in the said column (1).

PART II. OLD AGE (CONTRIBUTORY) PENSION.

CHAPTER 1. Reckoning of Contributions Paid Under the National Health Insurance Acts.

5 Reckoning of contributions under the National Health Insurance Acts.

5. (1) Notwithstanding subsection (4) of section 78 of the Act of 1981, a person who—

( a ) had not attained the age of 60 years before the 5thth day of January, 1953, and

( b ) had not entered into insurance before attaining that age,

shall be deemed to satisfy the contribution condition for old age (contributory) pension contained in paragraph (a) of section 79 (1) of the said Act if contributions as an employed contributor under the National Health Insurance Acts had been paid by or in respect of him, but, in any such case, the yearly average for the purposes of paragraph (c) of the said section 79 (1) shall be calculated in accordance with sub-article (3) of this article.

(2) Notwithstanding subsection (4) of section 78 of the Act of 1981, for the purpose of satisfying the contribution condition for old age (contributory) pension contained in paragraph (b) of section 79 (1) of the said Act, contributions paid by or in respect of an employed contributor under the National Health Insurance Acts shall, subject to article 11 of these Regulations, be taken into account, but, in any such case, the yearly average for the purposes of paragraph (c) of the said section 79 (1) shall be calculated in accordance with sub-article (3) of this article.

(3) The yearly average, in the case of a person to whom sub-article (1) or (2) of this article applies, shall be the average per contribution year of contribution weeks in respect of which that person has qualifying contributions, voluntary contributions or credited contributions reckonable for old age (contributory) pension purposes in the period commencing—

( a ) on the 5th day of January, 1953, in case the claimant is a man, or

( b ) on the 6th day of July, 1953, in case the claimant is a woman,

and ending at the end of the last complete contribution year before the date of the claimant's attaining pensionable age.

CHAPTER 2. Pro-rata Old Age (Contributory) Pension.

6 Entitlement to pro-rata old age (contributory) pension.

6. In the case of a relevant person who—

( a ) would, but for the fact that the contribution condition set out in subsection 1 (c) of section 79 of the Act of 1981 is not satisfied, be entitled to old age (contributory) pension, and

( b ) is not entitled to pension under regulations made pursuant to subsections (7) and (12) of section 79 of the Act of 1981, and

( c ) does not have an entitlement to an old age (contributory) pension by virtue of Regulation (EEC) 1408/71 of the Council of the European Communities or by virtue of a reciprocal agreement under the provisions of section 307 of the Act of 1981, and

( d ) had periods in which he had been—

(i) employed mainly in one or more of the employments specified in article 5 (1), 6 (1) or 7 (1) of the Social Welfare (Modifications of Insurance) Regulations, 1991 ( S.I. No. 94 of 1991 ), and

(ii) an employed contributor, or a self-employed contributor or a voluntary contributor in respect of whom an aggregate of at least 260 contributions, reckonable for the purposes of the contribution conditions for entitlement to old age (contributory) pension, have been paid in respect of or credited to him since—

(I) the 5th day of January, 1953, as respects a man, or

(II) the 6th day of July, 1953, as respects a woman, or

(III) his date of entry into insurance, whichever is the later,

he shall be entitled to an old age (contributory) pension at the rate calculated in accordance with article 7 of these Regulations.

7 Calculation of rate of pro-rata old age (contributory) pension.

7. (1) The rate of old age (contributory) pension payable to a relevant person referred to in article 6 of these Regulations shall be calculated in accordance with the formula—

A x B

  C

where—

A is the rate of old age (contributory) pension which would be payable to the relevant person if all of the contributions specified at C in respect of that person during the relevant period were reckonable for old age (contributory) pension purposes;

B is the number of—

(i) employment contributions paid in respect of or credited to the relevant person, and

(ii) self-employment contributions paid by him, and

(iii) voluntary contributions paid by him, during the relevant period, which are reckonable for the purposes of the contribution conditions for entitlement to old age (contributory) pension; and

C is the total number of—

(i) all of the employment contributions (other than employment contributions payable by a person who becomes an insured person by virtue of paragraph (b) of section 5 (1) of the Act of 1981 only) paid in respect of or credited to the relevant person, and

(ii) all of the self-employment contributions paid by him, and

(iii) all of the voluntary contributions paid by him,

during the relevant period:

Provided that where the amount so calculated is not a multiple of £2, it shall be increased to the next multiple of £2.

(2) Notwithstanding sub-article (1) of this article, any increase of pension payable under subsection (2), (4) or (6) of section 81 of the Act of 1981 shall be the same as if the contribution condition set out in subsection (1) (c) of section 79 of the said Act had been fully satisfied.

PART III. RETIREMENT PENSION.

CHAPTER 1. Reckoning of Contributions Paid Under the National Health Insurance Acts.

8 Reckoning of contributions under the National Health Insurance Acts.

8. (1) Notwithstanding subsection (5) of section 83 of the Act of 1981, a person who—

( a ) had not attained the age of 55 years before the 5th day of January, 1953, and

( b ) had not entered into insurance before attaining that age,

shall be deemed to satisfy the contribution condition for retirement pension contained in paragraph (a) of section 84 (1) of the said Act if contributions as an employed contributor under the National Health Insurance Acts had been paid by or in respect of him, but, in any such case, the yearly average for the purposes of paragraph (c) of the said section 84 (1) shall be calculated in accordance with subsection (4) of section 83 of the said Act.

(2) Notwithstanding subsection (5) of section 83 of the Act of 1981, for the purpose of satisfying the contribution condition for retirement pension contained in paragraph (b) of section 84 of the said Act, contributions paid by or in respect of an employed contributor under the National Health Insurance Acts shall be taken into account, but, in any such case, the yearly average for the purposes of paragraph (c) of the said section 84 (1) shall be calculated in accordance with subsection (4) of section 83 of the said Act.

CHAPTER 2. Pro-Rata Retirement Pension.

9 Entitlement to pro-rata retirement pension.

9. In the case of a relevant person who—

( a ) would, but for the fact that the contribution condition set out in subsection 1 (c) of section 84 of the Act of 1981 is not satisfied, be entitled to retirement pension, and

( b ) that person is not entitled to pension under regulations made pursuant to subsection (4) of section 84 of the Act of 1981, and

( c ) does not have an entitlement to a retirement pension by virtue of Regulation (EEC) 1408/71 of the Council of the European Communities or by virtue of a reciprocal agreement under the provisions of section 307 of the Act of 1981, and

( d ) had periods in which he had been—

(i) employed mainly in one or more of the employments specified in article 5 (1), 6 (1) or 7 (1) of the Social Welfare (Modifications of Insurance) Regulations, 1991 ( S.I. No. 94 of 1991 ), and

(ii) an employed contributor or a voluntary contributor in respect of whom an aggregate of at least 260 contributions, reckonable for the purposes of the contribution conditions for entitlement to retirement pension, have been paid in respect of or credited to him since—

(I) the 5th day of January, 1953, as respects a man, or

(II) the 6th day of July, 1953, as respects a woman, or

(III) his date of entry into insurance, whichever is the later,

he shall be entitled to a retirement pension at the rate calculated in accordance with article 10 of these Regulations.

10 Calculation of rate of pro-rata retirement pension.

10. (1) The rate of retirement pension payable to a relevant person referred to in article 9 of these Regulations shall be calculated in accordance with the formula—

A x B

  C

where—

A is the rate of retirement pension which would be payable to the relevant person if all of the contributions specified at C in respect of that person during the relevant period were reckonable for retirement pension purposes;

B is the number of—

(i) employment contributions paid in respect of or credited to the relevant person, and

(ii) voluntary contributions paid by him,

during the relevant period which are reckonable for the purposes of the contribution conditions for entitlement to retirement pension; and

C is the total number of—

(i) all of the employment contributions (other than employment contributions payable by a person who becomes an insured person by virtue of paragraph (b) of section 5 (1) of the Act of 1981 only) paid in respect of or credited to the relevant person, and

(ii) all of the self-employment contributions paid by him, and

(iii) all of the voluntary contributions paid by him,

during the relevant period:

Provided that where the amount so calculated is not a multiple of £2, it shall be increased to the next multiple of £2.

(2) Notwithstanding sub-article (1) of this article, any increase of pension payable under subsection (2), (4) or (6) of section 86 of the Act of 1981 shall be the same as if the contribution condition set out in subsection (1) (c) of section 84 of the said Act had been fully satisfied.

PART IV. Miscellaneous.

11 Conversion of contributions paid under the National Health Insurance Acts.

11. In taking contributions paid by or in respect of an employed contributor under the National Health Insurance Acts into account under article 5 (2) or article 8 (2) of these Regulations, every two contributions under those Acts shall be reckoned as three contributions paid, with any odd contribution being reckoned as two contributions paid.

12 Saver.

12. (1) These Regulations shall not operate so as to disentitle to an old age (contributory) pension, or to reduce the rate of such pension payable to, a person who satisfies the contribution conditions for old age (contributory) pension contained in section 79 (1) of the Act of 1981 by virtue solely of his insurance under the said Act.

(2) These Regulations shall not operate so as to disentitle to a retirement pension, or to reduce the rate of such pension payable to, a person who satisfies the contribution conditions for retirement pension contained in section 84 (1) of the Act of 1981 by virtue solely of his insurance under the said Act.

Article 4 (2)

SCHEDULE.

GIVEN under the Official Seal of the Minister for Social Welfare

this 28th day of November, 1991.

BRENDAN DALY,

Minister for Social Welfare.

The Minister for Finance hereby sanctions the foregoing Regulations.

GIVEN under the Official Seal of the Minister for Finance this

28th day of November, 1991.

BERTIE AHERN,

Minister for Finance.

EXPLANATORY NOTE.

The Regulations provide entitlement to old age (contributory) pension or retirement pension on a pro-rate basis to persons with a social insurance record which contain a mixture of full and modified contributions.

These new arrangements will apply to persons who first become insured for old age (contributory) pension purposes after 6 April 1991 and to persons who previously failed to qualify for either an old age (contributory) pension or a retirement pension because they had a social insurance record which contained a mix of full rate and modified rate PRSI contributions. Such persons will, provided they satisfy the contribution conditions, have an entitlement to a pro-rata pension the rate of which will be in proportion to the length of the periods of insurance completed at the full PRSI rate. To qualify for a pro rata pension a claimant must have at least 260 contribution weeks paid or credited at the full rate on his/her behalf since 1953 or, since entry into social insurance, if later.

The regulations also provide that contributions paid under the National Health Insurance Acts will be taken into account in certain circumstances for the purposes of satisfying the contribution conditions for pensions.