Ciara Conway (Waterford, Labour)
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162. To ask the Minister for Social Protection if her attention has been drawn to correspondence (details supplied ) and if there are plans to bring the State contributory pension within the standard PAYE taxing procedures; and if she will make a statement on the matter. [19436/13]

Joan Burton (Dublin West, Labour)
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When State pension is awarded, officials in my Department inform the claimant in writing that the pension is regarded as taxable income for income tax purposes and that liability for tax will depend on the overall circumstances of the individual. They are further informed that it is not the role of my Department to deduct tax at source but that the Revenue Commissioners will be informed of the payment type and amount being made to the claimant.

I have noted the relevant correspondence. However, the collection of taxes is a matter for the Revenue Commissioners and any changes to current arrangements is a matter for the Minister for Finance.

Clare Daly (Dublin North, Socialist Party)
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163. To ask the Minister for Social Protection if she will review criteria on which the contributory pension is awarded to self-employed people who have an outstanding PRSI liability by ensuring that the pension is awarded from the date the person reaches pension age and any liability deducted from those payments, rather than preventing them from being awarded the pension until the liability is discharged. [19439/13]

Joan Burton (Dublin West, Labour)
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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 is treated as one aggregate sum in accordance with the provisions of social welfare legislation. Where a person applying for State pension (contributory) has been a self-employed contributor, the person must pay all outstanding PRSI contributions before they are deemed to satisfy the qualifying conditions.

I have no plans to change these conditions relating to the award of pensions. The State pension is a very valuable asset and it is important, therefore, that those who claim a State pension have paid sufficient PRSI contributions over a working life and discharge those liabilities in full.

The recently published Actuarial Review of the Social Insurance Fund found that self-employed persons enjoy greater value from the payment of social insurance than employed persons, in particular, due to the lower rate of PRSI paid.