Written answers

Thursday, 1 February 2018

Department of Employment Affairs and Social Protection

Pension Provisions

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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333. To ask the Minister for Employment Affairs and Social Protection if the entitlements of State contributory pension recipients who were self-employed and in receipt of farm assist payments prior to 2007 will be reviewed; the estimated cost of granting a credit to those self-employed farm assist recipients who were not permitted to make PRSI class S contributions prior to 2007 to ensure low-income farmers in receipt can avail of full pension entitlements; the number of persons this PRSI issue relates to; and if she will make a statement on the matter. [5171/18]

Photo of Regina DohertyRegina Doherty (Meath East, 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, including their entitlement to State pension contributory, 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.

Currently PRSI credited contributions (credits) are only awarded to former employees, to cover gaps in social insurance where they are not in a position to pay PRSI such as during periods of unemployment, illness, etc. Self-employed workers do not qualify for credits.

In the absence of exact numbers of farm assistant recipients with annual income in excess of the income threshold for paying class S PRSI prior to 2007 (i.e. €3,174 pa), it is not possible to estimate the numbers of persons affected. Determining the cost to the Social Insurance Fund of awarding credits to the self-employed when calculating pension entitlement would require consideration of a number of factors including the age of the individual, the number of credits awarded and other social insurance contributions paid by that individual, and it is similarly not possible to estimate.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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334. To ask the Minister for Employment Affairs and Social Protection if a full review of pension entitlements will be arranged for a person (details supplied) in respect of whom details of previous employment were supplied some time ago with regard to the determination of the person's entitlement to a higher rate of contributory old age pension; and if she will make a statement on the matter. [5187/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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The person concerned is in receipt of a reduced rate state pension (contributory) with effect from their 66th birthday, based on an assessed yearly average of 19 contributions, covering their working life from 1962 to 2010. According to the records of my Department, the person concerned has a social insurance record of 919 reckonable contributions and credits, and is in receipt of the correct rate of contributory pension based on this social insurance record.

The person has no recorded contributions for the tax years 1969 to 1997/8 inclusive, and has fewer than the full rate of 52 contributions for a number of years during their contribution history. This affects their overall yearly average and, consequently, their rate of weekly pension entitlement.

The person was notified in writing of their pension award on 3 May 2011. Attached to that letter was a copy of their contribution record, as held by my Department and upon which their pension entitlement was calculated. The person has been requested on a number of occasions to provide details of any unrecorded periods of employment or self employment. No response has been received to date.

If the person concerned considers that they hold additional information which may impact on their pension eligibility, they should submit the details without delay to enable my Department to have the matter investigated.

I hope this clarifies the matter for the Deputy.

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