Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Benefit Payment for 65-Year-Olds, provided for under the Jobseeker's Benefit scheme was introduced in line with the Programme for Government commitment to address the position of people who are required to or choose to retire at age 65 before the pension age of 66. The payment is designed to bridge the gap for people who retire from employment or self-employment at age 65 until they qualify for the State Pension at age 66.

To be eligible for the payment a person must satisfy the qualifying conditions of the scheme including the PRSI social insurance contribution requirements, which demonstrates a recent attachment to the workforce.

The qualifying conditions for Jobseekers Benefit (Self-Employed) include the requirement that a person has completely ceased self-employment. For that reason, individuals who continue to pay Class S PRSI on a variety of income sources would not satisfy the conditions for Benefit Payment for 65-Years-Olds as they are not regarded as having ceased self-employment; they continue to pay Class S PRSI and are to be regarded as being in insurable self-employment.

According to the Department’s records, the person concerned last worked in February 2018. She applied for Benefit Payment for 65-Years-Olds in March 2022. Her application was disallowed on two grounds: firstly, that she did not satisfy the qualifying conditions with regard to having paid social insurance at the correct class of social insurance. In order to qualify for Benefit Payment for 65-Years-Old, the person concerned was required to have at least 13 A, H or P PRSI Contributions paid in 2018, 2019, 2020, 2021 or 2022, in accordance with Section 64(1)(b) of the Social Welfare Consolidation Act 2005 as amended. The person’s last paid PRSI Contribution under these Classes was in 2018 when she last worked. The second ground for disallowance was that she continued to pay Class S contributions. A person cannot qualify for Benefit Payment for 65-Years-Old if they are engaged in self-employment. The person concerned continued to pay Class S contributions arising from income from ARF, therefore it was determined that she was engaged in insurable self-employment.

She appealed the decision and the decision was upheld by the Appeals Officer in September 2022 on three grounds that firstly, the person concerned had not established that she was not engaged in self-employment in accordance with section 68(1)(c) of the Social Welfare Consolidated Act 2005 as amended; secondly, she did not meet the contribution conditions set down for entitlement in accordance with section 64(1)(b) of the Social Welfare Consolidated Act 2005 as amended; and thirdly she did not meet the alternative contribution condition set down at Article 48A of SI 142 of 2007.

The main reason that the person concerned does not qualify for the Benefit Payment for 65-Year-Olds was that she had not paid social insurance contributions at the appropriate class in the years 2018, 2019, 2020, 2021 or 2022.

However, the Deputy might note that in relation to Approved Retirement Funds (ARFs), Regulation SI 540 of 2022, introduced on 25 October 2022 (after the above case had been appealed) provides that a self-employed contributor in receipt of income solely from an ARF is treated the same as a person without income from an ARF when it comes to eligibility for BP65 under Jobseeker's Benefit (Self-Employed). This Regulation change applies only to persons who are self-employed contributors solely in respect of an ARF.

SI 540 of 2022 Regulations in relation to ARFs are not a determining factor in whether she would qualify for this benefit.

I trust that this clarifies the matter for the Deputy.