Written answers
Monday, 11 September 2017
Department of Employment Affairs and Social Protection
State Pension (Contributory) Eligibility
Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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1791. To ask the Minister for Employment Affairs and Social Protection the situation that applies when assessing the old age pension entitlement of persons that have during their lifetime spent a period of their working life in prison; if an allowance is made in calculating their entitlement to a contributory pension in view of the fact that they could neither make a paid contribution or sign for credits during the period of their incarceration; if not, if there are exceptions; if there is a precedent in this regard; and if she will make a statement on the matter. [37353/17]
Regina Doherty (Meath East, Fine Gael)
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In Ireland, as in other countries, the contributory pension (which is one of three pensions paid by the Department of Social Protection to those over 66) is aimed primarily at people with sustained contributions towards the Social Insurance Fund which finances it, on a pay as you go basis. Contributions to the Fund are rewarded with greater entitlements and coverage for a range of benefits, including contributory pension entitlements. It is important to ensure that those qualifying for a contributory pension have made a sustained contribution to the Social Insurance Fund over their working lives. To ensure that the individual can maximise their entitlement to a State pension (contributory), all contributions paid or credited over their working life from when they first enter insurable employment until pension age are taken into account when assessing their entitlement and the level of that entitlement.
There is no facility to award contributions for time spent in prison. Any change to this would require significant policy and legislative changes, and would also require additional funding, from the PRSI and tax paid by workers and taxpayers.
Where a person does not qualify for the maximum rate of State Pension Contributory (SPC), they may be entitled to the State Pension Non-Contributory (SPNC), where the current maximum rate is payable at €227, which is over 95% that of the maximum SPC rate. While the SPNC is means tested, there are a number of disregards which result in most such people being paid at that maximum rate. People who are not entitled to a SPNC payment would have significant alternative means.
I hope this clarifies the matter for the Deputy.
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