Written answers

Tuesday, 19 April 2005

Department of Social and Family Affairs

Pension Provisions

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 331: To ask the Minister for Social and Family Affairs if he intends to improve entitlement to pensions in respect of contributions made by self-employed persons; and if he will make a statement on the matter. [12237/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Self-employed contributions are assessable for old age (contributory) pensions on the same basis as standard rate contributions. The pensions payable are in accordance with the normal rates applying to different contribution levels. A special pension is available to self-employed people who were over 56 years in 1988 when compulsory social insurance was introduced for this group. This group could not satisfy the standard qualifying conditions including the requirement to commence paying insurance ten years before reaching pension age because of their ages. In 1999 a special flat rate pension of 50% of the standard maximum rate with equivalent increases for adult and child dependants, was introduced based on the payment of 260 contributions. The pension was seen as a reasonable response to the position in which this particular group found themselves. The option of a refund of the pension portion of the social insurance contribution was also an option made available. The position will be kept under review.

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