Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

Question 195: To ask the Minister for Social and Family Affairs if he will assist farmers who retired before the introduction of mandatory PRSI payments in 1988; and if he will make a statement on the matter. [12144/07]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

Farmers, and self-employed people in general, who were already retired when compulsory social insurance was introduced for this group in 1988 cannot benefit from contributory pensions. However, it is open to those who do not qualify for a contributory pension to apply for the state pension (non-contributory). The new enhanced state pension (non-contributory) for those over 66 years, which I introduced at the end of September last year, features significant improvements in the means test. In Budget 2007 I was happy to be able to build on these improvements by increasing the basic income disregard to €30 per week (doubled for pensioner couples). Allowances are also made in the means test for capital that a person might have, with up to €20,000 disregarded. The capital allowance is doubled in the case of couples. The State pension (non-contributory) was increased by €18 per week in Budget 2007, reaching the €200 per week target set by the Government.

As the House is aware, the Government is preparing a Green Paper on pensions and it is expected that this will be finalised by the end of this month and published as soon as possible thereafter. The Green Paper will include a discussion of all aspects of our pension system including the contribution that social welfare pensions can make to ensuring an adequate income for older people in retirement which is at the same time sustainable in the long-term. The position of people who do not at present qualify for a pension will be considered in this context. Following the publication of the Green Paper, a consultation process will then take place and the Government will respond to this by publishing a framework for future pensions policy.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

Question 196: To ask the Minister for Social and Family Affairs his views on, and such action as his Department will take to address, the situation whereby women who in the past were forced to retire from public jobs upon their marriage are now refused State pensions due to the fact that they have not worked sufficient weeks to qualify for such a pension, in particular the way this ruling affects a person (details supplied). [12202/07]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

In order to qualify for state pension (contributory), a person must satisfy a number of qualifying conditions, namely:- have entered into insurable employment before age 56, have paid at least 260 weeks full-rate contributions paid and have a yearly average of at least 10 contributions recorded (taking paid and credited PRSI Contributions into account) from 1953 or from the date of entry into insurance (whichever is the later) to the end of the last complete contribution year before reaching pension age. A yearly average of 48 contributions is required for a maximum rate pension.

The person concerned was refused state pension (contributory) on 19th January 2006 as she does not satisfy the basic paid requirement of 260 full rate contributions.

Women who left the workforce through the operation of the marriage bar were, in the main, public servants who were never insured for social welfare pension purposes. Accordingly, any loss of pension rights in their case relates more to their occupational position rather than social welfare pension entitlements.

That said, the Government is anxious to ensure that as many people as possible can be accommodated within the social welfare pensions system, with due regard being paid to the contributory principle underlying entitlement to contributory payments and, in the case of non-contributory payments, the need to ensure that resources are directed to those who are most in need.

It is estimated that there are some 47,000 people who are not receiving a social welfare pension payment in their own right, or as a qualified adult on the pension of their spouse or partner. These are mainly former public servants and self-employed people who were close to retirement or had retired before 1988, when the self-employed were brought within the social insurance system, together with their spouses.

The issues in relation to this group will be discussed in the forthcoming Green Paper on pensions and decisions regarding pension provision for them will be made in the light of the consultation process which will follow its publication and in the framing of a long-term policy for overall pension provision. The Green Paper is nearing completion and is due to be presented to Government shortly.