Written answers
Tuesday, 24 October 2023
Department of Employment Affairs and Social Protection
State Pensions
Richard Bruton (Dublin Bay North, Fine Gael)
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102. To ask the Minister for Employment Affairs and Social Protection if she is aware of persons who were allowed to remain long-term on illness benefit when restricted duration was first introduced, but who now on reaching retirement age, find that the required paid stamps have increased to 520 paid stamps, and thus have no pension rights, whereas persons on invalidity pension who also have been long-term unable to work, are allowed waive the obligation; the number of persons that are on long-term illness benefit; and her views on the fairness of this apparent differential treatment; and if she will make a statement on the matter. [46423/23]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Illness Benefit is the main income support provided by my Department to those who cannot work due to illness of any kind and who are covered by social insurance.
In 2007, and again in 2008, customers on continuous duration Illness Benefit were written to and advised of the option of applying for Invalidity Pension. This correspondence included a reference to persons on Invalidity Pension being automatically transferred to the State Pension (Contributory) at age 66.
A change in the rules and regulations governing the Illness Benefit scheme in 2009 included the introduction of a limit on the period for which Illness Benefit can be paid. Subject to the level of relevant PRSI contributions paid, Illness Benefit is now only payable for a maximum period of 2 years. In 2009, those persons who were at that time in receipt of Illness Benefit on a long-term basis were, as an exceptional measure, retained on Illness Benefit, subject to continued appropriate certification, on a continuous duration basis.
Currently there are over 7,000 continuous duration Illness Benefit customers. It has been and is open for any person on continuous duration Illness Benefit to make an application for Invalidity Pension at any stage. A project was started in 2020 to contact continuous duration Illness Benefit customers advising them of the option of applying for Invalidity Pension. However, this had to be paused due to the unprecedented challenges on the Department arising from the pandemic. Work in contacting these customers re-commenced during 2023.
Where a person reaches State Pension age and does not satisfy the conditions to qualify for a State Pension (Contributory) (SPC) or qualifies for less than the maximum rate, they may instead qualify for one of the following:
The State Pension (Non-Contributory) which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the SPC; or
An increase for a qualified adult (based on their own means), amounting up to 90% of a full rate SPC pension where their spouse has a contributory pension; or
Where their spouse/civil partner is deceased, a Widow's/Widower's/Civil Partner's Contributory Pension, which they may claim either based on their spouse/partner's or their own social insurance record. The qualifying conditions for this require fewer contributions paid (260) than the 520 required for the State Pension Contributory.
I trust this clarifies the matter for the Deputy.
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