Kevin Humphreys (Dublin South East, Labour)
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Question 290: To ask the Minister for Social Protection if her attention has been drawn to the fact that a contributory State pension has been refused on the grounds that PRSI contributions remain outstanding in respect of a person (details supplied) in Dublin 4; if she has persisted in applying this decision notwithstanding repeated submission of written confirmation from the Revenue Commissioners that, while tax liabilities remain to be remitted by agreed instalment, PRSI liabilities which were outstanding have been remitted in full; the basis on which she has failed to act on this evidence; if she will ensure that the person receives their pension entitlement in full and without further delay; and if she will make a statement on the matter. [28892/11]

Joan Burton (Dublin West, Labour)
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A claim for a State pension (contributory) was received from the person concerned on 10th March 2010. The claim was disallowed on 29th June 2010 as she had an outstanding PRSI (self-employment) liability, and the reason for this decision was communicated to her on that date.

Section 110 (1) of The Social Welfare (Consolidation) Act of 2005 provides that a self-employed contributor shall not be regarded as satisfying the qualifying conditions for State pension (contributory) unless all outstanding PRSI contributions are paid. Section 110 was amended in the Social Welfare and Pensions (No. 2) Act 2009 to provide that where unpaid self-employment PRSI contributions are paid subsequent to the claimant's 66th birthday, a State pension (contributory) will only be payable from the date on which the PRSI liability is fully discharged. This amending legislation applies to all State pension (contributory) claims received on or after 1st January 2010.

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 or to front-load the discharge of the PRSI element of the overall tax liability. According to the records of this Department, the person concerned currently has PRSI self-employment contributions outstanding for the following tax years: 2005, 2006, 2007 and 2008. When the person concerned has paid her income tax/PRSI liability in full, she should submit a receipt confirming this to this Department. Her pension claim will be reviewed and she will be notified of the outcome without delay.