Written answers

Tuesday, 15 October 2019

Department of Employment Affairs and Social Protection

Social Welfare Benefits Eligibility

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
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604. To ask the Minister for Employment Affairs and Social Protection if the entitlements of the State pension, contributory, recipients who were self-employed and in receipt of farm assist payments previously will be reviewed; and if she will make a statement on the matter. [41937/19]

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.

As announced in January 2018, all those effected by the change of rate bands in September 2012 were to have their pension entitlements reviewed under the interim Total Contributions Approach introduced last year.  Only a small number of reviews remain to be completed and these are awaiting additional information relating to gaps in the social insurance records of individuals requested by my Department.  I am advised that the review outcomes will issue to all remaining pensioners in the coming weeks.

I hope this clarifies the matter for the Deputies.

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