Brendan Smith (Cavan-Monaghan, Fianna Fail)
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63. To ask the Minister for Employment Affairs and Social Protection if she will review the entitlements of persons to a State pension (contributory) whose insurance contributions records were interrupted due to periods in receipt of farm assist while farm incomes were low; if the periods that persons were on farm assist can be credited for insurance contribution purposes; and if she will make a statement on the matter. [50549/17]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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68. To ask the Minister for Employment Affairs and Social Protection if she will give further consideration to the contributory pension entitlements of farmers whose insurance contribution records were interrupted while they availed of farm assist due to low farm incomes and that subsequently resumed payment of the appropriate insurance contributions; and if she will make a statement on the matter. [50550/17]

Regina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 63 and 68 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.

There are 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 a significant majority of such pensioners are paid at the full rate.

I hope this clarifies the matter for the Deputy.