Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Question 112: To ask the Minister for Social Protection if a person applying for a contributory old age pension is obliged to have all outstanding tax liabilities paid prior to receiving the pension. [13021/11]

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Question 113: To ask the Minister for Social Protection if a person applying for non-contributory pension is only obliged to clear outstanding PRSI contributions before being given the pension. [13022/11]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 112 and 113 together.

The qualifying conditions for State pension (contributory), as set out in Section 109 of the Social Welfare Consolidation Act 2005, require an applicant to

· have entered insurable employment before attaining the age of 56 years.

· have at least 260 paid contribution weeks, from employment or self-employment, since entry into insurance.

· satisfy the yearly average condition.

In addition, under Section 110 of the Social Welfare Consolidation Act 2005, as amended by Section 9 of the Social Welfare and Pensions (No. 2) Act 2009, where a person applying for State pension (contributory) has been a self-employed (Class S) PRSI contributor, the contribution conditions are not regarded as having been satisfied unless all self-employment contributions payable by him/her have been paid. The Revenue Commissioners are the primary collection agents of the Department in relation to PRSI. Income tax and PRSI payable by a self-employed contributor are treated as one aggregate sum in accordance with the provisions of Section 23 (4) of the 2005 Social Welfare Consolidation Act. For that reason, it is not possible to separate payments to Revenue between tax and PRSI liabilities.

Where an individual has partly discharged their aggregate liabilities to Revenue, this amount is apportioned equally between tax and PRSI without any provision for front-loading payments towards PRSI (only) liabilities. Neither will the Department agree to accept PRSI payments separately, when Revenue collection efforts are ongoing. Revenue may decide to cease collection efforts in relation to outstanding tax liabilities in accordance with its own statutory powers and administrative procedures. In such a case the Department will agree to accept payment of any outstanding PRSI liabilities at that point. There are no provisions under which an outstanding PRSI liability may be cancelled.

There is no link between the award of State pension (non-contributory) and any outstanding PRSI liabilities a claimant may have. If a claimant satisfies the conditions for receipt of State pension (non-contributory), including the means test, then the pension can be awarded.