Brendan Ryan (Dublin Fingal, Labour)
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554. To ask the Minister for Social Protection the terms and conditions of the agreement reached which facilitated a group (details supplied) to receive the State pension; and if he will make a statement on the matter. [41385/16]

Leo Varadkar (Dublin West, Fine Gael)
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The State pension (contributory) is one of the State pension schemes, and its rate of payment is related to contributions made over years into the Social Insurance Fund.

There are a number of criteria which must be satisfied in order to qualify for a State pension (contributory). These include that the person must be aged 66 or over, and that they have at least 520 paid contributions, i.e., a minimum of 10 years of paid contributions. Since 1961, when contributory pensions were first introduced, the ‘yearly average’ contributions test has been used in calculating the level of pension entitlement, where the total contributions paid or credited are divided by the number of years of the working life (from their entry into insurable employment up to the year prior to their reaching State pension age).

In 1986, the Commission on Social Welfare published a range of proposals aimed at developing and enhancing the structure and operation of the social insurance system.

The exclusion of clergy and other religious denominations from social insurance coverage was examined and in this context, it was not considered appropriate to continue to exclude from the system those who are employed in what might be termed secular employment as employees under a contract of service. The categories involved were religious who are mainly employed in schools, hospitals and other institutions. They came within the social protection system as employees, insurable at the ordinary or modified rate, as appropriate to their particular circumstances from 1988. The effect of this is that clergy and people of other religious denominations who are employed in public or private sector employment – i.e. in schools, hospitals and other public/social institutions – are afforded the same level of coverage as other employees in those sectors and generally insurable at PRSI Class A or D, as appropriate. Those involved in pastoral care only are generally insured as self-employed workers provided they meet the minimum income threshold.

Social insurance contributions (Class S PRSI) were introduced for self-employed people on 6th April 1988. These contributions provide cover for self-employed people for long-term benefits such as State pension (contributory) and widows/widowers pension (contributory). In addition to the qualifying conditions above, a person must have paid self-employment contributions in respect of at least one contribution year prior to reaching age 66, and all self-employment contributions payable must have been paid in full.

The Deputy should also note that religious missionaries outside Ireland do not pay PRSI into the Irish social insurance system but can pay voluntary contributions. If they fulfil the eligibility criteria they may qualify for a State pension contributory.

Where a person is unable to meet the qualifying conditions for a State pension (contributory), or is only eligible for a reduced rate of contributory pension, they may alternatively apply for State pension (non-contributory) amounting up to 95% of the maximum contributory pension rate which is subject to a means-test. A person must also satisfy the habitual residence condition, live in the State while getting this pension, be aged 66 or over, have a valid personal public service number, and satisfy a means test.

In relation to the habitual residency clause, missionaries who have chosen to resettle in Ireland will be considered to have their main centre of interest in Ireland thereby satisfying the habitual residency clause.

I hope this clarifies the matter for the Deputy.