Written answers

Tuesday, 19 January 2010

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 122: To ask the Minister for Social and Family Affairs the methodology used to determine whether partnership exists or is established to qualify for widows, widowers or old age pension entitlement in respect of the surviving partner or spouse in the case of the self employed with particular reference to those who have made contributions in respect of one or both partners over a ten year period; if her attention has been drawn to the number of such persons who do not qualify; if she intends to ease the qualification entitlements with a view to ensuring that the surviving partner will in all cases qualify for widows, widowers or old age pension even when self employed contributions were made in respect of one person only; and if she will make a statement on the matter. [1777/10]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Spouses who operate in a commercial partnership may be brought into the social insurance system, subject to meeting some of the general criteria outlined as follows:

· There is a written partnership agreement

· Each partner writes cheques on the business accounts in their own right

· There is a joint business account

· It is apparent to those doing business with the partnership that a partnership exists

· Business accounts and activities are in joint names of the partners

· Each partner makes a significant contribution to the running of the business

· The business is owned jointly by the partnership

· The profits and losses of the partnership are shared by each partner

· The business stationery reflects the existence of a partnership.

Applications received in Scope Section are forwarded to Social Welfare Inspectors who interview the parties concerned and report back to Scope Section. A Deciding Officer subsequently issues a formal decision on whether a partnership exists or not. To date, of 579 applications finalised, 508 cases have been approved.

When approved, both spouses may incur a liability to pay self-employed PRSI contributions and must discharge their liability before the contributions can be awarded. The person(s) concerned can then apply for pension or benefit in the normal way. Widows and widowers can qualify for one of a number of different schemes depending on their particular circumstances.

The widow(er)'s contributory pension is available to those who satisfy the necessary PRSI contribution conditions, either on their own record or that of the deceased spouse and, therefore, there are no disqualifications from entitlement to pension where relevant PRSI contribution conditions are satisfied.

In relation to the widow's contributory pension, the pension is automatically awarded, provided all other qualifying conditions are satisfied, where the late spouse was in receipt of either a state pension (transition or contributory) which included an increase for a dependent spouse (or would have but for the fact that the spouse was in receipt of state pension non-contributory, blind pension or carer's allowance).

While there are no plans to further ease the qualifying conditions at present, any further reforms to the state pension (contributory) will be addressed in the forthcoming national pensions framework.

To qualify for a state pension (contributory), a number of minimum qualifying conditions must be met. A person must have at least 260 paid social insurance contributions, a yearly average of at least 10 contributions paid or credited since entry into social insurance, and must have entered social insurance at least 10 years before state pension age. In addition, self employed contributors must have a minimum of one year's paid self employed contributions before reaching age 66 and have all self-employed liability, payable by them paid. From 6 April 2012, a minimum of 520 paid contributions will be required.

These conditions have been designed to ensure that those qualifying for payment have an adequate and sustained history of contributions to the social insurance fund over their working lives. The requirements for minimum pensions have been eased over the years and a number of special pensions were introduced.

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