Clare Daly (Dublin North, Socialist Party)
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136. To ask the Minister for Social Protection if she will ensure that the pension of a person (details supplied) is paid from 22 February 2013. [20629/13]

Clare Daly (Dublin North, Socialist Party)
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137. To ask the Minister for Social Protection the reason a person (details supplied) was issued with a letter from the State pension contributory Social Welfare Office on 12 March explaining that a self employed pension was dependant on payment of PRSI contributions as outlined by section 110(1) of the Social Welfare Consolidation Act 2005 and yet a month later a follow on letter was received saying that the relevant section was section 23.4 of the Act and that as that had not been met the payment would not be made. [20630/13]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 136 and 137 together.

An application for a State pension (contributory) was received from the person concerned on 8 January 2013. The application was disallowed as he had an outstanding self-employment PRSI liability for the 2007 tax year. This decision was communicated to him on 12 March 2013.

Both Sections 23(4) and 110(1) of the Social Welfare (Consolidation) Act 2005 are relevant. Section 23(4) provides that income tax and PRSI payable by a self-employed contributor are treated as one aggregate sum. 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. Section 110 (1) 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.

Revenue has advised the Department that as at 22 April 2013, the income tax/PRSI liability of the person concerned has not been finalised. When he has confirmed that he has paid the outstanding amount to Revenue, his pension claim will be reviewed and he will be notified of the outcome without delay.