Regina Doherty (Meath East, Fine Gael) | Oireachtas source

It replaced the former smallholders’ unemployment assistance payment. In line with the then existing arrangements for unemployment assistance, including the smallholders and pre-retirement allowances, the income of farm assist recipients was exempt from class S pay related social insurance, PRSI, for self-employed workers. Recipients of farm assist who had previously paid class S social insurance had the option of paying voluntary contributions to maintain their social insurance record, provided they satisfied all of the qualifying conditions. Since 1 January 2007, the exemption from class S PRSI has been removed and those receiving jobseeker’s allowance and farm assist are subject to class S PRSI as self-employed contributors on their self-employed income, provided their annual income is €5,000 or more.

There are currently no plans to amend legislation relating to the State contributory pension to award a maximum rate of payment to pensioners who had a period between 1999 and 2006 when they were exempt from paying PRSI contributions. However, a person aged over 66 with limited PRSI contributions over the course of his or her life may claim a State non-contributory pension if he or she has an income need and this entitlement is not based on the payment of social insurance contributions but on the basis of need. The maximum weekly rate is €232 which is over 95% of the maximum contributory pension rate. While it is means tested, there are significant disregards which are to the benefit of claimants and a significant majority of such pensioners are paid at the full rate. I hope this clarifies the matter for the Deputy.

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