PART III

Pension Schemes

10. —(1) Section 78 of the Principal Act is hereby amended by the substitution for subsection (3) of the following subsection:

“(3) In this Chapter—

‘yearly average’ means, in relation to any claimant, the average per contribution year of contribution weeks in respect of which that claimant has qualifying contributions, voluntary contributions or credited contributions in the period commencing either—

(a) on the 5th day of January, 1953, in case the claimant is a man, or on the 6th day of July, 1953, in case the claimant is a woman, or

(b) 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),

(whichever is the later) and ending at the end of the last complete contribution year before the date of his attaining pensionable age;

‘alternative yearly average’ means, in relation to any claimant, the average per contribution year of contribution weeks in respect of which that claimant has qualifying contributions, voluntary contributions or credited contributions in the period commencing on the 6th day of April, 1979, and ending at the end of the last complete contribution year before the date of his attaining pensionable age.”.

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

(a) the substitution for paragraph (c) of subsection (1) of the following paragraph:

“(c) that the claimant has a yearly average or an alternative yearly average of not less than 48.”, and

(b) the substitution for subsections (7) and (8) of the following subsections:

“(7) Subject to subsection (8), regulations may provide for entitling to old age (contributory) pension a claimant who would be entitled thereto but for the fact that he has a yearly average of less than 48.

(8) Regulations under subsection (7) shall provide that old age (contributory) pension payable by virtue thereof shall be payable at a rate less than that specified in the Second Schedule, and the rate specified by the regulations may vary by reference to the yearly average so calculated, but any increase of that pension payable under section 81 (1) or section 81 (2) shall be the same as if the claimant had a yearly average of not less than 48.”

(3) This section shall apply only in the case of a person who attains pensionable age on or after the 6th day of April, 1992.

11. —(1) Section 83 of the Principal Act is hereby amended by the substitution for subsection (4) of the following subsection:

“(4) In this Chapter—

‘yearly average’ means, in relation to any claimant, the average per contribution year of contribution weeks in respect of which that claimant has qualifying contributions, voluntary contributions or credited contributions in the period commencing either—

(a) on the 5th day of January, 1953, in case the claimant is a man, or on the 6th day of July, 1953, in case the claimant is a woman, or

(b) 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),

(whichever is the later) and ending at the end of the last complete contribution year before the date of his attaining the age of 65 years;

‘alternative yearly average’ means, in relation to any claimant, the average per contribution year of contribution weeks in respect of which that claimant has qualifying contributions, voluntary contributions or credited contributions in the period commencing on the 6th day of April, 1979, and ending at the end of the last complete contribution year before the date of his attaining the age of 65 years.”

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

(a) the substitution for paragraph (c) of subsection (1) of the following paragraph:

“(c) that the claimant has a yearly average or an alternative yearly average of not less than 48.”, and

(b) the substitution for subsections (4) and (5) of the following subsections:

“(4) Subject to subsection (5), regulations may provide for entitling to retirement pension a claimant who would be entitled thereto but for the fact that he has a yearly average of less than 48.

(5) Regulations under subsection (4) shall provide that retirement pension payable by virtue thereof shall be payable at a rate less than that specified in the Second Schedule, and the rate specified by the regulations may vary by reference to the yearly average so calculated, but any increase of that pension payable under section 86 (1) or section 86 (2) shall be the same as if the claimant had a yearly average of not less than 48.”

(3) This section shall apply only in the case of a person who attains the age of 65 years on or after the 6th day of April, 1992.

12. —Section 92 of the Principal Act is hereby amended by the substitution for subsection (1) of the following subsection:

“(1) Subject to this Act, a widow shall be entitled to a widow's (contributory) pension—

(a) if the contribution conditions set out in section 93 are satisfied by her or by her husband's insurance, or

(b) if her husband was entitled to an old age (contributory) pension or a retirement pension at an increased weekly rate by virtue of section 81 (1) or section 86 (1) in respect of a period ending on his death, or

(c) if her husband would have been entitled to an old age (contributory) pension or a retirement pension at an increased weekly rate by virtue of section 81 (1) or section 86 (1), but for the receipt by that woman of a pension under Chapter 3 of Part III or a carer's allowance under Chapter 5B of Part III in her own right, in respect of a period ending on his death.”.

13. —(1) The Third Schedule to the Principal Act is hereby amended by the substitution for Rule 1A (inserted by section 35 of the Act of 1990 and in this section referred to as the “existing Rule”) of the following Rule:

“1A. (1) Notwithstanding the provisions of this Schedule, for the purposes of old age pension, the gross proceeds derived from the sale of the principal residence of the claimant or pensioner, or, in the case of a married couple who are living together, the spouse of the claimant or pensioner where such spouse has attained pensionable age, shall not, subject—

(a) to such limit,

(b) to such conditions,

(c) in such circumstances, and

(d) for such periods,

as shall be prescribed, be taken into account in calculating the means of the claimant or pensioner.

(2) Notwithstanding the provisions of this Schedule, for the purposes of—

(a) widow's (non-contributory) pension,

(b) deserted wife's allowance,

(c) prisoner's wife's allowance, or

(d) lone parent's allowance,

where the claimant or recipient has attained pensionable age, the gross proceeds derived from the sale of the principal residence of the claimant or recipient shall not, subject—

(i) to such limit,

(ii) to such conditions,

(iii) in such circumstances, and

(iv) for such periods,

as may be prescribed, be taken into account in calculating the means of the claimant or recipient.

(3) In this Rule ‘gross proceeds derived from the sale of the principal residence’ means—

(a) the agreed sale price of the residence, or

(b) where the claimant or pensioner purchases alternative accommodation, the difference between the agreed sale price of the former residence and the agreed purchase price of the replacement residence.

(4) Paragraphs (1) and (2) shall not apply to any sums arising from the investment or profitable use of the gross proceeds derived from the sale of the principal residence.”.

(2) Subsection (1) 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 the coming into operation of the subsection as respects different provisions of the Rule inserted in the Third Schedule to the Principal Act by the subsection and where an order under this subsection relates to part or parts only of that Rule, the order may provide for the repeal of specified provisions of the existing Rule on a specified day or days.

14. — Section 2 (2) of the Principal Act is hereby amended by the insertion after paragraph (d) of the following paragraph:

“(e) the circumstances in which a person is to be regarded as living alone shall be specified in regulations.”.

15. —(1) Section 2 (1) of the Principal Act is hereby amended by—

(a) the substitution for the definition of “orphan” of the following definition:

“‘orphan’ means a qualified child—

(a) both of whose parents are dead, or

(b) one of whose parents is dead or unknown, as the case may be, and whose other parent—

(i) is unknown, or

(ii) has abandoned him, or

(iii) has refused or failed to provide for him,

where that child is not normally residing with a step-parent or with a person who is married to and living with that step-parent;”, and

(b) the substitution for subparagraph (ii) of paragraph (b) of the definition of “qualified child” (inserted by section 6 of the Act of 1991) of the following subparagraph:

“(ii) sections 50 (9), 52 (1), 81 (2), 86 (2), 91 (2), 95 (1), 96, 103 (1), 156B (1) (b), 161 (1), 178 (1), 182 (1), 198C (1), 1981(1) and 232A, and”.

(2) The following provisions of the Principal Act are hereby repealed:

(a) subsection (4) of section 52, and

(b) subsection (3) of section 97.

16. —(1) Section 50 of the Principal Act is hereby amended by the substitution for subsection (9) (inserted by section 2 of the Social Welfare Act, 1982 ) of the following subsection:

“(9) The weekly rate of pension under subsection (2) or (6) shall be increased by the appropriate amount set out in column (4) or (5) of Part I of the Second Schedule in respect of each qualified child who normally resides with the beneficiary.”.

(2) The following provisions of the Principal Act are hereby repealed—

(a) subsection (5) of section 81,

(b) subsection (5) of section 86,

(c) subsection (5) of section 91,

(d) subsection (3) of section 100, and

(e) the definition of “qualified child” in section 157.

17. —The Principal Act is hereby amended by—

(a) the insertion in section 157 (as amended by section 7 of the Social Welfare Act, 1989 and section 16 of this Act) before the definition of “weekly means” of the following definition:

“‘spouse’ means each person of a married couple who are living together or a man and woman who are not married to each other but are cohabiting as man and wife;”, and

(b) the insertion in paragraph (d) (inserted by section 15 of the Social Welfare (No. 2) Act, 1985 ) of section 162 (1) after “or this Part” of “, subject to the restriction that the pensioner shall not be entitled for the same period to an increase of pension under this paragraph in respect of more than one person”.

18. —The Third Schedule to the Principal Act is hereby amended by—

(a) the insertion after paragraph (4) of Rule 1 of the following proviso:

“Provided that, where such income is attributable to a period prior to the year immediately preceding the date of calculation but is received in a subsequent year, it shall be regarded for the purposes of this paragraph as having been received in the year to which it is attributable.”,

(b) the insertion after paragraph (2) of Rule 2 of the following paragraph:

“(3) In the case of a person to whom paragraph (1) applies, where the income or the yearly value of the property taken to be part of his means for the purposes of that paragraph has reduced since the date of calculation, the calculation may be revised, subject to such conditions and in such circumstances as may be prescribed, but regulations made under this paragraph shall not cause the income or the yearly value of the property taken to be part of his means to be increased.”,

(c) the substitution for Rule 3 (as amended by section 18 of the Act of 1990) of the following Rule:

“3. (1) In the case of pensions under Chapter 3 or a carer's allowance under Chapter 5B of Part III, the following provisions shall have effect when calculating the means of a person who is one of a couple living together—

(a) the means of the person shall be taken to be one-half of the total means of the couple;

(b) the person shall be deemed to be entitled to one-half of all property to which the person or the other member of the couple is entitled or to which the person and the other member of the couple are jointly entitled;

(c) for the purposes of this Rule, the means of each member of the couple shall first be determined in accordance with these Rules (each being regarded as an applicant for a pension or a pension at a higher rate or carer's allowance, as the case may be) and the total means shall be the sum of the means of each member as so determined;

(d) where one member of the couple dies, nothing which was reckoned for the purposes of pension, or would (if such deceased member had beenentitled to receive any pension) have been so reckoned, as means of the deceased member shall be so reckoned as means of the surviving member for the purpose of reducing the pension of the surviving member if any payment in respect of that pension was made before the death of the deceased member or becomes payable in respect of a period previous or part of which was previous to that death.

(2) In paragraph (1) ‘couple’ means a married couple who are living together or a man and woman who are not married to each other but are cohabiting as man and wife.

(3) In calculating the means of a person who is one of a married couple living apart from his spouse, any sum paid by him to his spouse under a separation order shall be deducted in calculating his means.”, and

(d) the substitution for Rule 4 (as amended by section 13 of the Act of 1990) of the following Rule:

“4. Notwithstanding these Rules, where—

(a) a pension under Chapter 3, 4 or 5A of Part III is in course of payment to or in respect of a person or the spouse of the person or both of them, and

(b) a pension or pensions (in this Rule referred to as ‘the other pension’), not being a pension or pensions mentioned in paragraph (a), is in course of payment to or in respect of the person or the spouse of the person or both of them,

in calculating the means of the person or of the spouse or of both of them for the purposes of Chapter 3, 4 or 5A (as the case may require) of Part III, any portion of the amount of an increase in the other pension or the aggregate increase, where more than one increase in the other pension has occurred, which, if it were reckoned as means, would result in a reduction in the amount of the pension or combined pensions (as the case may be) which would be greater than the amount by which the other pension has been increased, shall not be reckoned as means.”.