Brendan Smith (Cavan-Monaghan, Fianna Fail)
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90. To ask the Minister for Social Protection his plans to implement changes to the State (contributory) pension criteria to ensure that persons that had a break in their insurance contribution records while in receipt of farm assist due to periods of low farm income are not deprived of the full State contributory pension; and if he will make a statement on the matter. [25759/17]

Leo Varadkar (Dublin West, Fine Gael)
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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 1 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.

I have no plans to amend legislation regarding the State pension (contributory), to award a maximum rate payment to pensioners who had such a period during 1999-2006 when they were exempt from PRSI.

However, a person aged over 66 with limited PRSI contributions over the course of their life may claim a State pension (non-contributory) if they have an income need, and this entitlement is not based on payment of social insurance contributions. The maximum weekly rate is €227, i.e., over 95% of the maximum contributory pension rate. While it is means-tested, there are very significant disregards which are to the benefit of claimants, and over 70% of such pensioners are paid at the full rate.

I hope this clarifies the matter for the Deputy.