Written answers

Tuesday, 17 January 2017

Department of Social Protection

Social Insurance

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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616. To ask the Minister for Social Protection the reason farmers who were in receipt of farm assist and who paid an annual self-employed stamp are not receiving the benefit of that stamp in their contributory pensions for the years 1999 to 2007; his plans to rectify this anomaly; and if he will make a statement on the matter. [41743/16]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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664. To ask the Minister for Social Protection if he will consider the anomaly that arises from the exclusion from the class S PRSI charge on self-employed to the farm assist scheme from 1999 to 2006 inclusive, which in turn has resulted in a small number of farmers not having the required number of PRSI contributions to establish entitlement to either a contributory or non-contributory pension; and if he will make a statement on the matter. [1786/17]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 616 and 664 together.

The farm assist scheme was introduced in 1999 to provide income support for low income farmers. It replaced the former smallholders’ unemployment assistance payment. In line with the then existing arrangements for unemployment assistance (including smallholders) and pre-retirement allowance, the income of farm assist recipients was exempt from class S PRSI for self-employed workers.

Recipients of farm assist who had previously paid Class S social insurance had the option of paying voluntary contributions to maintain their social insurance record, provided they satisfied the qualifying conditions.

Since 1st January 2007, the exemption from class S PRSI has been removed and those receiving jobseeker’s allowance and farm assist are subject to Class S PRSI as self-employed contributors on their self-employed income, provided their annual income is €5,000 or more.

Entitlement to the State pension non-contributory is not based on payment of social insurance contributions. It is available on a means tested basis for lower income pensioners, including farmers, who do not qualify for a contributory pension.

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