Written answers

Wednesday, 2 April 2008

Department of Social and Family Affairs

Pension Provisions

9:00 pm

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

Question 576: To ask the Minister for Social and Family Affairs the progress made by his Department following the recommendations by the Irish Human Rights Commission in relation to a special pension for the self employed introduced in 1999; if the committee of experts has completed it's review of the matter in the context of it's annual report on compliance with the European Code of Social Security submitted by his Department; and if he will make a statement on the matter. [12009/08]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

The case reported on by the Irish Human Rights Commission (IHRC) involves a couple who were over 56 years of age in 1988 when compulsory social insurance for the self-employed was introduced and who could not, therefore, satisfy one of the basic requirements for pension as they did not commence paying insurance 10 years before pension age.

As the Deputy may be aware, a special pension paid at half the personal rate and requiring the payment of at least 260 contributions was introduced in 1999 to cater for such people. The IHRC recommended that a reduced benefit should also be paid to people who, because of advanced age, could not satisfy the conditions for this special pension. This would be a significant departure from the principles underpinning qualification for pensions, and other benefits, which require that a minimum level of contributions should be made before a person can qualify for a payment.

In its conclusions on the provisions relating to the special pension for the self employed, the Irish Human Rights Commission (IHRC) placed particular emphasis on Article 29(5) of the European Code of Social Security. This section deals with the situation where the beneficiary, because of his advanced age at the moment the pension scheme enters into force, is unable to fulfil the qualifying conditions. In such circumstances, the Code provides for the payment of a reduced pension "under prescribed conditions" to be determined in national legislation.

Accordingly, the views of the ILO Committee of Experts, which examines annual national reports on compliance with the European Code of Social Security on behalf of the Council of Europe, were sought on the conclusions of the IHRC report, and in particular whether the provisions of the Code require the payment of a pension in the circumstances, regardless of how few contributions have been paid by the person involved. The ILO Committee has recently been in touch with the Department in this regard and has indicated that Article 29(5) applies only to pension schemes "conditional upon a minimum period of contribution or employment", which, by definition, do not require pension to be paid in all cases, regardless of how few contributions have been paid by the person concerned. This response indicates that the Department's position in this matter is likely to be upheld.

The report of the ILO Committee will be reviewed at the beginning of April by a Council of Europe Governmental Committee of Experts on Social Security tasked with the interpretation of the Code. The IHRC has been informed of the up to date position.

Comments

No comments

Log in or join to post a public comment.