Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

486. To ask the Minister for Social Protection the status of the entitlement of self-employed farmers who are put on an S stamp under the State pension (contributory) scheme; and if he will make a statement on the matter. [9603/16]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Self-employed farmers pay PRSI at the class S rate of 4% and are covered for long term social insurance benefits and pensions, including the State pension (contributory), widow’s, widower’s or surviving civil partner’s (contributory) pension, guardian’s payment (contributory), maternity benefit and adoptive benefit. In addition cover for paternity benefit will be extended to this group (and employees generally) later this year.

To establish entitlement to State pension (contributory), a contributor must, in the first instance, have paid at least 520 qualifying contributions by the time they reach pensionable age, currently 66 years. Once this condition is satisfied, a full or reduced weekly rate of pension is payable depending on the yearly average number of contributions paid over the period from commencement of employment/self-employment up to pension age (66).

The qualifying conditions for entitlement to State pension (contributory) apply to all classes of contributors and there is no differentiation in treatment for State pension (contributory) purposes between the self-employed and employees. In addition, it should be noted that the self-employed are awarded 52 contributions each year regardless of the number of weeks in which the self-employment was carried out in that year while employees are awarded contributions only in respect of the number of weeks worked.

Employees and the self-employed who reach 66 years and who do not satisfy the conditions for entitlement to the State pension (contributory) are eligible to apply for the means-tested State pension (non-contributory).

I hope this clarifies the matter for the Deputy.