Michael Creed (Cork North West, Fine Gael)
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Question 260: To ask the Minister for Social and Family Affairs her plans to investigate the administrative mistake made in her Department and reported in a newspaper (details supplied); and if she will make a statement on the matter. [3929/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Spouses who are actively engaged in a commercial partnership, including the operation of a farm, as opposed to simply being the joint owners of a property, are treated as individual self-employed contributors. In these cases, both spouses are liable to pay PRSI (Class S) contributions in a timely manner.

On foot of a Programme for Government commitment an information leaflet, 'Working with your spouse: how it affects your social welfare contributions and entitlements' , has been developed between the Department of Social & Family Affairs and the Revenue Commissioners to set out the social welfare and tax implications of families co-working in a shared business. It was published on the 25th of June, 2008. The leaflet clarifies that spouses who operate in a commercial partnership may be brought into the social insurance system, subject to certain criteria. In this way, both spouses incur a liability to pay self-employed PRSI and build up entitlement towards a contributory state pension and other social welfare benefits. It is open to any person to apply for recognition of a commercial partnership.

The qualifying conditions for State Pension (Contributory) require the applicant to: have entered insurable employment before attaining the age of 56 years; have at least 260 paid contribution weeks since entry into insurance; and satisfy the yearly average condition.

In addition, Section 110 (1) of the Social Welfare (Consolidation) Act 2005 provides that a self-employed contributor shall not be regarded as satisfying the qualifying conditions unless:

a. the person has paid self-employment contributions in respect of at least one contribution year before attaining pensionable age, and

b. all self-employment contributions payable by him or her have been paid.

This legislative provision has been on the statute books for over fifteen years and there has not been a change in policy in relation to the requirement to have paid at least one year's self employment contributions prior to reaching age 66 in order to qualify for a State Pension (Contributory).

It should be noted that while the publication of the leaflet 'Working with your spouse: how it affects your social welfare contributions and entitlements' clarified existing procedures in relation to the recognition of commercial partnerships between husbands and wives for social insurance purposes, including retrospective payment of social insurance, it did not involve a change in existing policy or administration. In particular, the clarification of the position did not alter people's potential entitlements and all applicants for the state pension (contributory) must continue to satisfy the eligibility conditions as contained in legislation, and outlined above.

Approximately 1,000 people applied for recognition of a commercial partnership with their spouses. Of these, 579 cases have been decided on the basis of whether or not they qualify as a partnership. Some 508 of those were deemed to have a partnership in existence. Of these 268 have applied for a State Pension (Contributory). However, following a review of pension claims, it was found that in certain cases, the self-employment contributions were all paid after the persons concerned had passed their 66th birthday. They therefore had no entitlement to a State Pension (Contributory), and should not have been paid under this scheme. 85 claims for State Pension (Contributory) which were in payment have been disallowed and 16 customers have had their rates reduced. A further 46 customers failed to satisfy the qualifying conditions for State Pension (Contributory) and accordingly their claims have been refused.

There are 121 additional applications for commercial partnerships currently being processed by Scope Section of the Department where the persons concerned have not paid any self employment contributions prior to reaching age 66. If a favourable partnership decision is reached the person(s) may incur a PRSI liability for the years in question. These customers will not satisfy the condition that they had paid self employment contributions prior to reaching age 66. Procedures are now in place whereby applicants will be given the option to reconsider their application for commercial partnership on the basis that the approval of a commercial partnership may result in a potential PRSI liability, which they are legally obliged to discharge, but due to the fact that they have not paid any self-employment contributions before reaching 66 years of age, they would not qualify for a pension.

The Department understands and apologises for the upset and distress caused to all persons concerned and regrets the administrative error involved.

Michael Creed (Cork North West, Fine Gael)
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Question 261: To ask the Minister for Social and Family Affairs the number of recipients of the contributory State pension, who qualified by means of the establishment of the existence of a farm partnership, who have been requested to refund their pension to her Department; and if she will make a statement on the matter. [3933/10]

Michael Creed (Cork North West, Fine Gael)
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Question 262: To ask the Minister for Social and Family Affairs the monetary figure that is outstanding from recipients of the contributory State pension who were awarded payments having proven the existence of a farm partnership and reconciling their PRSI record despite passing the age of 66; and if she will make a statement on the matter. [3936/10]

Michael Creed (Cork North West, Fine Gael)
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Question 265: To ask the Minister for Social and Family Affairs if her Department has stopped direct debit payments to recipients of the contributory State pension who qualified having established the existence of a farm partnership retrospectively having passed the age of 66; and if she will make a statement on the matter. [3939/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Numbers 261, 262 and 265 together.

Spouses who are actively engaged in a commercial partnership, including the operation of a farm, as opposed to simply being the joint owners of a property, are treated as individual self-employed contributors. In these cases both spouses are liable to pay PRSI (Class S) contributions in a timely manner.

On foot of a Programme for Government commitment an information leaflet, 'Working with your spouse: how it affects your social welfare contributions and entitlements', has been developed between the Department of Social & Family Affairs and the Revenue Commissioners to set out the social welfare and tax implications of families co-working in a shared business. It was published on the 25th of June, 2008. The leaflet clarifies that spouses who operate in a commercial partnership may be brought into the social insurance system, subject to certain criteria. In this way, both spouses incur a liability to pay self-employed PRSI and build up entitlement towards a contributory state pension and other social welfare benefits. It is open to any person to apply for recognition of a commercial partnership.

The qualifying conditions for State Pension (Contributory) require the applicant to: - have entered insurable employment before attaining the age of 56 years - have at least 260 paid contribution weeks since entry into insurance - satisfy the yearly average condition.

In addition, Section 110 (1) of the Social Welfare (Consolidation) Act 2005 provides that a self-employed contributor shall not be regarded as satisfying the qualifying conditions unless: (a) the person has paid self-employment contributions in respect of at least one contribution year before attaining pensionable age, and (b) all self-employment contributions payable by him or her have been paid.

Section 110 (1) (a) of the Social Welfare Consolidation Act, 2005, has been on the statute books for over fifteen years and there has not been a change in policy in relation to the requirement to have paid at least one year's self employment contributions prior to reaching age 66, in order to qualify for a State Pension (Contributory).

Approximately 1,000 people applied for recognition of a commercial partnership with their spouses. Of these, 579 cases have been decided on the basis of whether or not they qualify as a partnership. Some 508 of those were deemed to have a partnership in existence. Of these 268 applied for a State Pension (Contributory).

However, following a review of pension claims, it was found that in certain cases, the self employment contributions were all paid after the persons concerned had passed their 66th birthday. They therefore had no an entitlement to a State Pension (Contributory), and should not have been paid under this scheme. 85 claims for State Pension (Contributory) which were in payment have been disallowed and 16 customers have had their rates reduced. A further 46 customers failed to satisfy the qualifying conditions for State Pension (Contributory) and accordingly their claims have been refused.

The total amount of overpayments arising in these cases has not yet been determined. However, overpayments will be determined in the above cases and the customers will be notified and requested to repay the amounts involved. A Recovery Officer may reduce or cancel an overpayment based on the circumstances of an individual case, in line with the governing legislation.

There are 121 applications for commercial partnerships recognitions currently being processed by Scope Section of the Department where the persons concerned have not paid any self employment contributions prior to reaching age 66. If a favourable partnership decision is reached the person(s) may incur a PRSI liability for the years in question.

These customers will not satisfy the condition that they had paid self employment contributions prior to reaching age 66. Last week, the Department contacted each applicant and advised them of the position and to consider if they wish the Department to continue its investigation or to withdraw their application.

The Department understands and apologises for the upset and distress caused to all persons concerned and regrets the administrative error involved.

Michael Creed (Cork North West, Fine Gael)
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Question 263: To ask the Minister for Social and Family Affairs if she has received legal advice regarding her decision to seek refunds on contributory State payments to farm spouses that claimed the pension retrospectively having passed the age of 66; and if she will make a statement on the matter. [3937/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Spouses who are actively engaged in a commercial partnership, including the operation of a farm, as opposed to simply being the joint owners of a property, are treated as individual self-employed contributors. In these cases, both spouses are liable to pay PRSI (Class S) contributions in a timely manner.

On foot of a Programme for Government commitment an information leaflet, 'Working with your spouse: how it affects your social welfare contributions and entitlements', has been developed between the Department of Social & Family Affairs and the Revenue Commissioners to set out the social welfare and tax implications of families co-working in a shared business. It was published on the 25th of June, 2008. The leaflet clarifies that spouses who operate in a commercial partnership may be brought into the social insurance system, subject to certain criteria. In this way, both spouses incur a liability to pay self-employed PRSI and build up entitlement towards a contributory state pension and other social welfare benefits. It is open to any person to apply for recognition of a commercial partnership.

Approximately 1,000 people applied for recognition of a commercial partnership with their spouses. Of these, 579 cases have been decided on the basis of whether or not they qualify as a partnership. Some 508 of those were deemed to have a partnership in existence. Of these 268 have applied for a State Pension (Contributory).

However, following a review of pension claims, it was found that in certain cases the self employment contributions were all paid after the persons concerned passed their 66 birthday. They therefore had no entitlement to a State Pension (Contributory), and should not have been paid under this scheme. 85 claims for State Pension (Contributory) which were in payment have been disallowed and 16 customers have had their rates reduced. A further 46 customers failed to satisfy the qualifying conditions for State Pension (Contributory) and accordingly their claims have been refused.

The total amount of overpayments arising in these cases has not yet been determined. However, overpayments will be determined in these cases. The persons concerned will be notified and requested to repay the amount involved. However a Recovery Officer may reduce or cancel an overpayment based on the circumstances of an individual case, in line with governing legislation.

The qualifying conditions for State Pension (Contributory) as set out in the Social Welfare (Consolidation) Act 2005 require the applicant to: - have entered insurable employment before attaining the age of 56 years - have at least 260 paid contribution weeks since entry into insurance - satisfy the yearly average condition.

In addition, Section 110 (1) of the Social Welfare (Consolidation) Act 2005 provides that a self-employed contributor shall not be regarded as satisfying the qualifying conditions unless: (a) the person has paid self-employment contributions in respect of at least one contribution year before attaining pensionable age, and (b) all self-employment contributions payable by him or her have been paid.

It is open to any person to apply for recognition of a commercial partnership. However, to be eligible for State Pension, the legislation stipulates that at least 52 self-employment contributions must be paid by a person before they reach 66 years of age. Contributions paid by a pension applicant's spouse do not satisfy this condition.

This legislative provision has been on the statute books for over fifteen years and therefore, there has not been a change in policy in relation to the requirement to have paid self employment contribution prior to reaching age 66 in order to qualify for a State Pension (Contributory).

It should be noted that while the publication of the leaflet 'Working with your spouse: how it affects your social welfare contributions and entitlements' clarified existing procedures in relation to the recognition of commercial partnerships between husbands and wives for social insurance purposes, including retrospective payment of social insurance, it did not involve a change in existing policy or administration. In particular, the clarification of the position did not alter people's potential entitlements and all applicants for the state pension (contributory) must continue to satisfy the eligibility conditions as contained in legislation, and outlined above.

The Department understands and apologises for the upset and distress caused to all persons concerned and regrets the administrative error involved.

Michael Creed (Cork North West, Fine Gael)
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Question 264: To ask the Minister for Social and Family Affairs if her Department has threatened to deduct payments from the spouses of those from whom her Department has requested the refund of their contributory State pension, based on the fact the pension was awarded retrospectively due to the applicant having passed the age of 66 at the time of application; and if she will make a statement on the matter. [3938/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Spouses who are actively engaged in a commercial partnership, including the operation of a farm, as opposed to simply being the joint owners of a property, are treated as individual self-employed contributors. In these cases both spouses are liable to pay PRSI (Class S) contributions in a timely manner.

The qualifying conditions for State Pension (Contributory) require the applicant to: - have entered insurable employment before attaining the age of 56 years - have at least 260 paid contribution weeks since entry into insurance - satisfy the yearly average condition.

In addition, Section 110 (1) of the Social Welfare (Consolidation) Act 2005 provides that a self-employed contributor shall not be regarded as satisfying the qualifying conditions unless: (a) the person has paid self-employment contributions in respect of at least one contribution year before attaining pensionable age, and (b) all self-employment contributions payable by him or her have been paid.

Section 110 (1)(a) of the Social Welfare Consolidation Act, 2005, has been on the statute books for over fifteen years and there has not been a change in policy in relation to the requirement to have paid at least one year's self employment contributions prior to reaching age 66, in order to qualify for a State Pension (Contributory).

Approximately 1,000 people applied for recognition of a commercial partnership with their spouses. Of these, 579 cases have been decided on the basis of whether or not they qualify as a partnership. Some 508 of those were deemed to have a partnership in existence. Of these 268 have applied for a State Pension (Contributory). However, following a review of pension claims, it was found that, in certain cases ,the self employment contributions were all paid after the persons concerned had passed their 66th birthday. They therefore had no entitlement to a State Pension (Contributory), and should not have been paid under this scheme. 85 claims for State Pension (Contributory) which were in payment have been disallowed and 16 customers have had their rates reduced. A further 46 customers failed to satisfy the qualifying conditions for State Pension (Contributory) and accordingly their claims have been refused.

The total amount of overpayments arising in these cases has not yet been determined.

However, overpayments will be determined in the above cases and the customers will be notified and requested to repay the amounts involved. A Recovery Officer may reduce or cancel an overpayment based on the circumstances of an individual case, in line with governing legislation.

The responsibility for repayment of any overpayments arising from these reviews is a matter for the individual customers concerned.

The Department understands and apologises for the upset and distress caused to all persons concerned and regrets the administrative error involved.

Michael Creed (Cork North West, Fine Gael)
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Question 266: To ask the Minister for Social and Family Affairs if a person (details supplied) in County Cork will be entitled to a contributory State pension on reaching 66 years on the basis of the existence of a farm partnership and the payment of appropriate PRSI contributions; and if she will make a statement on the matter. [3951/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Spouses who are actively engaged in a commercial partnership, including the operation of a farm, as opposed to simply being the joint owners of a property, are treated as individual self-employed contributors and are thus liable to social insurance contributions. In these cases, both spouses are liable to pay PRSI (Class S) contributions in a timely manner.

On foot of a Programme for Government commitment an information leaflet, 'Working with your spouse: how it affects your social welfare contributions and entitlements', has been developed between the Department of Social & Family Affairs and the Revenue Commissioners to set out the social welfare and tax implications of families co-working in a shared business. It was published on the 25th of June, 2008. The leaflet clarifies that spouses who operate in a commercial partnership may be brought into the social insurance system, subject to certain criteria. In this way, both spouses incur a liability to pay self-employed PRSI and build up entitlement towards a contributory state pension and other social welfare benefits. It is open to any person to apply for recognition of a commercial partnership.

The qualifying conditions for State Pension (Contributory) require the applicant to:

- have entered insurable employment before attaining the age of 56 years

- have at least 260 paid contribution weeks since entry into insurance

- satisfy the yearly average condition.

In addition, Section 110 (1) of the Social Welfare (Consolidation) Act 2005 provides that a self-employed contributor shall not be regarded as satisfying the qualifying conditions unless:

(a) the person has paid self-employment contributions in respect of at least one contribution year before attaining pensionable age, and

(b) all self-employment contributions payable by him or her have been paid.

Section 110 (1)(a) of the Social Welfare Consolidation Act, 2005, has been on the statute books for over fifteen years and there has not been a change in policy in relation to the requirement to have paid at least one year's self employment contributions prior to reaching age 66, in order to qualify for a State Pension (Contributory).

It should be noted that while the publication of the leaflet 'Working with your spouse: how it affects your social welfare contributions and entitlements' clarified existing procedures in relation to the recognition of commercial partnerships between husbands and wives for social insurance purposes, including retrospective payment of social insurance, it did not involve a change in existing policy or administration. In particular, the clarification of the position did not alter people's potential entitlements and all applicants for the state pension (contributory) must continue to satisfy the eligibility conditions as contained in legislation, and outlined above.

An application for the recognition of a commercial partnership between the person concerned and their spouse is currently under examination in the Department. The person concerned will be advised of the outcome of this investigation in due course.

I have arranged for a copy of this person's PRSI contribution record and a 'Work it out' guide, which explains how the State Pension (Contributory) is calculated, to be issued to her home address, to assist her in assessing her pension entitlement.