Written answers

Tuesday, 26 February 2008

Department of Social and Family Affairs

Pension Provisions

9:00 pm

Photo of Ulick BurkeUlick Burke (Galway East, Fine Gael)
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Question 262: To ask the Minister for Social and Family Affairs if he will reconsider the plight of a small number of self employed people who are denied pension entitlements due to the age barrier having entered the scheme on its introduction on 5 April 1988 and could not have fulfilled the ten requirement conditions on age grounds, that is having reached 66 years prior to completion of the ten years contributions; his views on allowing them the facility of purchasing the shortfall years contributions as is available to other groups; and if he will make a statement on the matter. [7528/08]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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It is a fundamental principle of our social insurance system that those qualifying for benefits must satisfy a range of contribution and other conditions. In the case of contributory pensions, this involves commencing payment of contributions 10 years before pension age, payment of a minimum number of contributions at an appropriate rate and reaching a minimum average annual contribution rate. The state pension (contributory) is a valuable benefit and the conditions are designed to ensure that those qualifying have had a sufficient and ongoing attachment to the social insurance system.

A special pension for the self-employed was introduced in 1999 to enable people who were over age 56 at the time of the introduction of PRSI for the self-employed in 1988, and who could not therefore meet the standard qualifying conditions, to receive a contributory pension. The qualifying conditions require payment of 260 contributions and the pension is paid at half the maximum rate.

Similar arrangements were introduced around the same time for people with social insurance contributions dating from before the unified system of social insurance were introduced in 1953. The objective of both these measures was to provide pensions for people who could not receive payments under standard qualifying conditions, with due regard being paid to the contributory principle underpinning entitlement to social welfare payments generally.

There is no facility within the social insurance system to allow for payment of social insurance contributions which were not due in the first place by virtue of a person's status as an employee, self-employed, or as a voluntary contributor.

The special pension for the self-employed was considered to be a reasonable response to the issues raised in this case and that remains the situation. The state pension (non-contributory) is, of course, available to those people who do not qualify for a contributory pension, or who receive a reduced payment, and who can satisfy a means test.

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