Richard Bruton (Dublin North Central, Fine Gael)
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Question 315: To ask the Minister for Social and Family Affairs the reason persons who work in full-time week on, week off shift work and pay Class A PRSI contributions lose out on their contributions for the weeks which they have not worked (details supplied); and if he will make a statement on the matter. [38031/05]

Séamus Brennan (Dublin South, Fianna Fail)
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The concept of weeks of insurable employment plays a key role in the operation of the social insurance system and is provided for in legislation. The system provides that social insurance contributions are paid by employees and employers on earnings exceeding €38 for each week of insurable employment. These contributions progressively build towards entitlement to a range of short and long-term benefits.

The specific pattern of work could potentially impact on a person's contributions record depending on the alignment of the working pattern with the legally defined contribution week. Many shift workers, for example nurses, work a condensed working week. They compress their working hours into one week while being paid over two weeks in respect of that employment; each of these are valid as weeks of insurable employment. As such, employees in the scenario do not lose any social protection coverage.

Two questions need to be considered in addressing the issue, that is, what impact do these working arrangements have on their entitlement to social welfare benefits and to what extent does the employee benefit from the social insurance arrangements.

In terms of entitlement to social welfare benefits, changes were made to the homemakers scheme to allow for the award of credited contributions where an eligible person who is in atypical employment such as job-sharing or on shift-work and the week off coincides with the PRSI contribution week. These credits maintain entitlement to old age contributory pension thus protecting their long term entitlement to that pension. The contribution requirements for unemployment, disability and maternity benefits were relaxed in 2001 providing an alternative test to the normal requirement. The usual test requires 39 contributions paid or credited in the relevant tax year while the alternative test requires 26 contributions paid in both the relevant tax year, and 26 the previous year also. This easing of the contribution requirements benefited all those work-sharing, working part-time, seasonally or intermittently. Employees may also be entitled to additional PRSI contributions on the basis of entitlement to public holidays under the Organisation of Working Time Act 1997.

In terms of the benefits of the system for atypical workers, in the years when the contribution weeks are not aligned with the calendar week and the working week spans two contribution weeks, provided they earn €38 or more, she-he gains two weeks PRSI allowances; pays less than half what is being paid by the other full-time workers and is awarded 52 contributions.

The issue was discussed by a social partnership group which considered possible developments towards a fully inclusive social insurance model. In its report, which was published in June this year, the group concluded that the potential incidence of a problem with people not qualifying for benefits would not warrant a fundamental review of the weekly contributions system, while also suggesting that the situation be monitored and information on atypical working arrangements be collated to inform future developments. The situation reflects the contributory principle which is at the heart of the social insurance system and there are no plans at present to review fundamentally the weekly contribution basis of the social insurance system.

Willie Penrose (Westmeath, Labour)
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Question 316: To ask the Minister for Social and Family Affairs his views on the fact that widows whose late spouses contributed to the PRSI scheme and to the widows' scheme, will cease being awarded their contributory old age pension upon them reaching the eligibility age for receipt of the old age pension, and due to the fact that these widows would have worked for considerable periods of time and paid appropriate PRSI contributions are placed in the position that they will only receive one of the persons despite being clearly entitled to both pensions; his plans to rectify this anomaly; and if he will make a statement on the matter. [38180/05]

Séamus Brennan (Dublin South, Fianna Fail)
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The social welfare system is based on income replacement with entitlement related to defined contingencies such as sickness, unemployment, old age and widowhood. Social welfare legislation provides that generally only one social welfare payment is payable at the one time. This approach is common to social security systems across the world. The overall objective is to ensure that social welfare expenditure is applied to the best effect in tackling disadvantage and to continuing the Government's policy of significant improvement in basic payments to all social welfare recipients.