Michael Creed (Cork North West, Fine Gael)
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Question 85: To ask the Minister for Social Protection the position regarding the liability of self-employed persons for minimum PRSI contributions to secure an entitlement to contributory pension on retirement; if she will specifically address this issue in the context of those self-employed persons who are in receipt of means tested social welfare payments; and if she will make a statement on the matter. [29215/11]

Joan Burton (Dublin West, Labour)
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Self-employed people are liable for PRSI at the Class S rate of 4% as long as their annual income exceeds €5,000. PRSI paid under Class S contributes to building entitlement to long-term benefits such as the State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory). If self-employed people are on low incomes as a result of a downturn in demand for their services, they may establish eligibility to assistance-based payments including payments such as jobseeker's allowance.

For the purposes of establishing their entitlement to assistance-based payments, the individual's means will take account of the level of earnings in the last 12 months in determining their expected income for the following year. In the current climate account is taken of the downward trend in the economy. An individual who continues to be self-employed while in receipt of a social assistance payment such as jobseeker's allowance may continue to pay Class S contributions as long as his or her income from self-employment exceeds the €5,000 insurability threshold. This would assist towards establishing their entitlement to long-term social insurance pensions.