Written answers

Tuesday, 20 November 2018

Department of Employment Affairs and Social Protection

Social Insurance

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context | Oireachtas source

598. To ask the Minister for Employment Affairs and Social Protection if there is a mechanism that can be availed of in a circumstance (details supplied). [47704/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The social insurance system is based on the "contribution week".  This week begins on the first day of January each year.

Each contribution week where a person is engaged in insurable employment a contribution is paid based on the nature of their employment, for most workers earning over €38 per week this contribution will be made at Class A.  Only one contribution per week may be used to qualify for a State pension (contributory) (SPC).  Therefore, in cases where a contributor may have two employments in the same week only one contribution will count towards the qualifying conditions for SPC.

Similarly, a contribution year is made up of 52 contribution weeks and where a person has two or more employments throughout the year the maximum number of contributions that will be reckoned for State pension (contributory) will be 52, even if there are 104 contributions recorded for the contributor in that year.

One of the main features of the social insurance system is the contributory principle.  Employees, along with the self-employed must pay the appropriate number of contributions in order to gain entitlement to any payment, including SPC.  Any relaxation to the qualifying conditions for SPC or any other scheme would have a negative impact on the future financial viability of the social insurance fund.

Pensioners who do not qualify for the State pension (contributory) may apply for the means tested State pension (non-contributory).

I trust this clarifies the matter for the Deputy. 

Comments

No comments

Log in or join to post a public comment.