Written answers

Thursday, 7 December 2006

Department of Social and Family Affairs

Pension Provisions

7:00 pm

Photo of John PerryJohn Perry (Sligo-Leitrim, Fine Gael)
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Question 140: To ask the Minister for Social and Family Affairs if, with regard to the state pension transition where a person can earn less that €38 a week paying PRSI at Class J, he will increase this amount; and if he will make a statement on the matter. [42153/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The state pension (transition), previously known as the retirement pension, is a social insurance payment made to persons aged 65 who entered social insurance at least 10 years before reaching pension age, who paid a minimum number of PRSI contributions at the appropriate rate and who achieved a minimum yearly average contribution rate over their working lives.

In addition to satisfying the relevant contribution conditions, those qualifying for a state pension (transition) must be retired from employment. Retirement is defined as meaning that a person is not engaged in an employment which is insurable employment or insurable self-employment, other than an employment which is insurable for occupational injuries benefit only. For employees, coverage for occupational injuries only is linked to a threshold of earnings, currently set at €38 per week. Similarly, self-employed workers are not entitled to state pension (transition) unless they have income of less than €3,174 per annum.

An increase in the employee insurability threshold would remove full social insurance cover from a large number of employees who are not retired and are working part time and on low earnings.

There are no plans at present to alter the arrangements with regard to entitlement to state pension (transition), nor the income thresholds related to insurability, but the matter is being kept under review.

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