PART IV

Contribution Conditions for Pensions

23. —(1) Section 78 of the Principal Act is hereby amended by the insertion after subsection (3) of the following subsections:

“(4) For the purposes of this Chapter—

‘entry into insurance’ means, subject to section 78A, in relation to any person, whichever occurs first—

(a) the date on which he first becomes an insured person by virtue of section 5 (1), except where he becomes an insured person by virtue of paragraph (b) of subsection (1) of the said section 5 only, or

(b) the date on which he first becomes an insured person by virtue of section 17A,

and that that date shall be regarded as the date of entry into insurance for the purposes of paragraphs (a) and (c) of section 79(1).

(5) Notwithstanding subsection (4), regulations may provide that the date on which a person first becomes an employed person or a self-employed person, insurable for old age pension or retirement pension purposes under the legislation of another Member State of the European Communities, or under the legislation of any other State with which the Minister has made a reciprocal arrangement under the provisions of section 307, may be regarded as the date of entry into insurance.

(6) Notwithstanding subsections (4) and (5), regulations may provide that where a date of entry into insurance occurs before a date to be prescribed, that date may be regarded as the day of entry into insurance.”.

(2) Section 79 of the Principal Act is hereby amended—

(a) by the insertion after subsection (13) (inserted by section 30 of the Act of 1988) of the following subsections:

“(14) Regulations may provide, subject to subsection (15), for entitling to old age (contributory) pension persons who would be entitled thereto but for the fact that the contribution condition set out in subsection (1) (c) is not satisfied and who do not have an entitlement to an old age (contributory) pension by virtue of Regulation (EEC) No. 1408/71 of the Council of the European Communities ¹ , or by virtue of a reciprocal arrangement under the provisions of section 307 and who in respect of any period have been employed mainly in one or more of the employments specified in subarticle (1) of Article 7 of the Social Welfare (Modifications of Insurance) Regulations, 1979 (S.I. No. 87 of 1979).

(15) Regulations for the purposes of subsection (14) shall provide that an old age (contributory) pension payable by virtue thereof shall—

(a) be payable at a rate less than that specified in the Second Schedule, and the rate specified by the regulations may vary in relation to the proportion to which the number of employment contributions reckonable for old age (contributory) pension purposes together with self-employment contributions paid by the insured person bears to the total number of employment contributions and self-employment contributions, but any increase of pension in respect of a qualified child shall be paid at the rate specified in the Second Schedule, and

(b) where the amount calculated in accordance with paragraph (a) is not a multiple of £2, be increased to the next multiple of £2.”,

(b) by the deletion in subsection (9) of “(other than contributions paid by or in respect of a person in respect of a period during which such person is or was employed mainly in one or more of the employments specified in subarticle (1) of Article 7 of the Social Welfare (Modifications of Insurance) Regulations, 1979 (S.I. No. 87 of 1979))”, and

(c) by the deletion of subsection (11).

24. —(1) Section 83 of the Principal Act is hereby amended by the insertion after subsection (4) of the following subsections:

“(5) For the purposes of this Chapter—

‘entry into insurance’ means, in relation to any person, whichever occurs first—

(a) the date on which he first becomes an insured person by virtue of section 5 (1), except where he becomes an insured person by virtue of paragraph (b) of subsection (1) of the said section 5 only, or

(b) the date on which he first becomes an insured person by virtue of section 17A,

and that that date shall be regarded as the date of entry into insurance for the purposes of paragraphs (a) and (c) of section 84 (1).

(6) Notwithstanding subsection (5), regulations may provide that the date on which a person first becomes an employed person or a self-employed person, insurable for old age pension or retirement pension purposes under the legislation of another Member State of the European Communities, or under the legislation of any other State with which the Minister has made a reciprocal arrangement under the provisions of section 307, may be regarded as the date of entry into insurance.

(7) Notwithstanding subsections (5) and (6), regulations may provide that where a date of entry into insurance occurs before a date to be prescribed, that day may be regarded as the date of entry into insurance.”.

(2) Section 84 of the Principal Act is hereby amended—

(a) by the insertion after subsection (5) of the following subsections:

“(6) Regulations may provide, subject to subsection (7), for entitling to retirement pension persons who would be entitled thereto but for the fact that the contribution condition set out in subsection (1) (c) is not satisfied and who do not have an entitlement to a retirement pension by virtue of Regulation (EEC) No. 1408/71 of the Council of the European Communities ¹ , or by virtue of a reciprocal arrangement under the provisions of section 307 and who have in respect of any period been employed mainly in one or more of the employments specified in subarticle (1) of Article 7 of the Social Welfare (Modifications of Insurance) Regulations, 1979 (S.I. No. 87 of 1979).

(7) Regulations for the purposes of subsection (7) shall provide that a retirement pension payable by virtue thereof shall—

(a) be payable at a rate less than that specified in the Second Schedule, and the rate specified by the regulations may vary in relation to the proportion to which the number of employment contributions reckonable for retirement pension purposes paid by the insured person bears to the total number of employment contributions and self-employment contributions, but any increase of pension in respect of a qualified child shall be paid at the rate specified in the Second Schedule, and

(b) where the amount calculated in accordance with paragraph (a) is not a multiple of £2, be increased to the next multiple of £2.”.

25. —(1) Section 2 (1) of the Principal Act is hereby amended by the substitution for the definition of “entry into insurance” of the following definition:

“‘entry into insurance’ means, subject to sections 16 and 93 (6) and Chapters 7 and 8 of Part II, in relation to any person, the date on which he became an insured person;”.

(2) Section 16 of the Principal Act is hereby amended by the insertion after subsection (4) of the following subsection:

“(5) For the purposes of this section ‘entry into insurance’ shall have the meaning assigned to it by section 78 (4) or (5).”.

(3) Section 93 of the Principal Act is hereby amended by the substitution for subsection (6) of the following subsection:

“(6) Where a person becomes an employed contributor by virtue of paragraph (b) of section 5 (1) and would not, apart from that paragraph, be an employed contributor, his entry into insurance by virtue of that paragraph shall be deemed not to be an entry into insurance for the purposes of subsection (1) of this section and for those purposes his entry into insurance shall be deemed to occur when he first becomes an employed contributor by virtue of paragraph (a) of section 5 (1).”.

26. —(1) If in any respect any difficulty arises in bringing this Part into operation, the Minister may, with the consent of the Minister for Finance, by order do anything which appears to be necessary or expedient for bringing this Part into operation, and any such order may modify the provisions of this Part so far as may appear necessary or expedient for carrying the order into effect.

(2) Every order made by the Minister under this section shall be laid before each House of the Oireachtas as soon as may be after it is made, and if a resolution is passed by either House of the Oireachtas within the next twenty-one days on which such House has sat after the order is laid before it annulling such order, such order shall be annulled accordingly, but without prejudice to the validity of anything previously done under such order.

(3) No order may be made under this section after the expiration of one year after the passing of this Act.

27. —(1) This Part shall apply only to—

(a) a person who first becomes—

(i) an insured person by virtue of section 5 (1) of the Principal Act (inserted by section 40 of this Act) insured for old age (contributory) pension purposes, or

(ii) an insured person by virtue of section 17A of the Principal Act,

on or after the 6th day of April, 1991, or

(b) a person who fails to satisfy the contribution condition set out in subsection (1) (c) of section 79 of the Principal Act or in subsection (1) (c) of section 84 of the said Act and had periods in which he had been—

(i) employed mainly in one or more of the employments specified in sub-article (1) of Article 7 of the Social Welfare (Modifications of Insurance) Regulations, 1979 (S.I. No. 87 of 1979), and

(ii) an employed contributor in respect of whom employment contributions reckonable for the purposes of the contribution conditions for entitlement to old age (contributory) pension were payable.

(2) Paragraph (b) of subsection (1) of this section shall come into operation on such day or days as the Minister may appoint by order or orders and different days may be so appointed for different provisions of that paragraph.

¹OJ No. L149 of 5.7.1971.

¹OJ No. L149 of 5.7.1971.