asked the Minister for Social Welfare if a person (name supplied) in Dublin who was promoted to a salaried position of inspector with CIE in 1970 is eligible to contribute voluntarily to the social welfare pension fund; if not, why, in view of the contribution made to that fund by him for the past 25 years; and if he will state the entitlement of this person on retirement.
Ceisteanna—Questions. Oral Answers. - CIE Employee's Pension Entitlement.
31.
A person may become a voluntary contributor under the Social Welfare Acts only when he ceases to be compulsorily insurable under these Acts. The person referred to was insured for all benefits under the Acts up to the time of his promotion in February, 1970. He then became a permanent and pensionable officer of CIE and, as such, became compulsorily insurable at the special rate giving cover for widow's and orphan's pensions and occupational injuries benefit only. He is still so insurable.
There is no provision in the Social Welfare Acts whereby a person who so changes his compulsory insurance status may pay voluntary contributions to provide cover for retirement and old age (contributory) pensions.
The person named will not attain the age of 65—the age at which retirement pension is payable—until 1994. Under present legislation and in the absence of further reckonable contributions he would not then qualify for a retirement pension under the Social Welfare Acts.
Is the Minister aware that there are literally thousands of people in the country who had been paying social welfare contributions, who then got promotion and were removed from the obligation to pay it as was their company with whom they were employed? These people now find themselves deprived of the old age pension. Is there some way of amending the Social Welfare Acts so that they can continue paying social welfare contributions and thereby gain their pensions? The Minister must be inundated with requests from people who have been so deprived, and does he not think it is unfair in view of the fact that they have paid for so many years?
The Deputy is well aware of the provisions in legislation governing such persons. In certain cases they can continue as voluntary contributors for certain benefits. If they are in State employment where they are already contributing to a pension scheme they are only insurable for widows and orphans and the health benefits. They are not insurable under the two schemes. Deputies seem to imply here that anyone who pays insurance under these schemes must get it back somehow. Insurance is an insurance against certain contingencies that may or may not arise.
Old age is a contingency. Many a person has contributed for over 20 years and through no fault of his own he is deprived of his pension.
The person in question, if he is not benefiting under our scheme, is already benefiting under a State-supported scheme.
What about a man in a private company?
He would be covered.