Written answers

Thursday, 23 February 2006

Department of Social and Family Affairs

Social Insurance

4:00 pm

Photo of John PerryJohn Perry (Sligo-Leitrim, Fine Gael)
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Question 108: To ask the Minister for Social and Family Affairs if he has received correspondence (details supplied); if his attention has been drawn to the circumstances outlined; if the necessary credits will be given for the years they were not allowed to sign; and if he will make a statement on the matter. [7631/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The Deputy will be aware that the case in question has been a subject of previous correspondence in relation to the person's entitlement to a reduced rate contributory pension. The question at issue at this stage relates to entitlement to credited contributions, retrospectively for periods spent outside the workforce.

PRSI credited contributions are an integral part of the social insurance system. The primary purpose of PRSI credits is to secure social welfare benefits and pensions of insured workers by covering gaps in insurance where workers are not in a position to pay PRSI, such as during periods of unemployment, illness or caring. In order to qualify for social insurance credits a person must have previously worked and paid PRSI at the ordinary or modified rate of contribution, must have paid or credited contributions in the last two contribution years and must show evidence of underlying entitlement to the contingency giving rise to the credited contribution, such as illness, unemployment or maternity. In addition, credited contributions are provided in particular circumstances for periods of studying or training or when undertaking work as a volunteer development worker.

If, at any stage since starting work, a claimant develops a gap of more than two complete tax years in his or her social insurance record, he or she will not be entitled to credits and will need to return to work and pay PRSI contributions for a further 26 weeks before eligibility for credits is restored. Contributions paid at Classes S, J, K or M cannot be used to satisfy this condition.

Separate arrangements have been put in place to protect the long-term social insurance pensions of men and women who spend periods outside the workforce for caring purposes under the homemakers scheme. A scheme providing the option of making voluntary PRSI contributions also exists which allows previously insured workers to maintain their entitlement to long-term benefits such as old age pension.

The range of opportunities available to insured workers to maintain and build a contribution record is quite comprehensive but consistently reinforces the underlying premise that credits are linked to a temporary detachment from the labour force. Previously, as now, quite a number of women who were not in receipt of a social welfare payment, for example because of means, but who can shown an underlying entitlement to that payment were awarded credited contributions. There is no scope to award credited contributions retrospectively in the circumstances outlined.

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