Written answers

Thursday, 15 November 2018

Department of Employment Affairs and Social Protection

State Pension (Contributory)

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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187. To ask the Minister for Employment Affairs and Social Protection if social insurance contributions made by self-employed persons before 1987 will be recognised for pension purposes when those self-employed persons reach pension age; and if she will make a statement on the matter. [47454/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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Whether social insurance contributions made by self-employed persons before 1987 are reckonable for pension purposes will depend upon the nature of those contributions.

Class S PRSI was introduced for the self-employed in 1988. Prior to 1988 the self-employed could maintain their social insurance record by paying Voluntary Contributions, once they had already been an employed contributor and met the qualifying conditions of the Voluntary Contributions scheme. Generally, Voluntary Contributions maintained entitlement to a limited range of pension payments, including the State pension (contributory).

I hope this clarifies the matter for the Deputy.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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188. To ask the Minister for Employment Affairs and Social Protection if a person (details supplied) is entitled to an increased pension if the person's record of self-employment and associated social insurance contributions before 1987 is taken into account; and if she will make a statement on the matter. [47455/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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The person concerned was awarded a reduced state pension (contributory) from their 66th birthday, based on an assessed yearly average of 35 contributions, covering their working life from November 1970 to end-December 2016. The person was notified of this decision in writing on 5 April 2017.

Social insurance for self- employed persons was introduced in April 1988. Periods of self-employment prior to that date cannot be taken into account for pension entitlement purposes as those periods were not insurable under Social Welfare legislation.

The person’s social insurance record has been reviewed and additional credited contributions have been awarded for the years 1985/86 and 1986/87. This increases the persons yearly average from 35 to 37. However, as the person's yearly average remains within the 30-39 yearly average rate band, their rate of state pension (contributory) payment is unchanged. The person was notified of the outcome of this review on 12 November 2018.

It is open to the person concerned to apply for state pension (non-contributory). This is a means-tested pension payment. If the person has an assessed weekly income of less than €257.50, they may qualify for a state pension (non-contributory). If an entitlement to state pension (non-contributory) is established, the person will be paid the most financially beneficial pension.

I hope this clarifies the matter for the Deputy.

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