asked the Minister for Social Welfare when persons who will be compulsorily insured on the removal of the £1,600 remuneration limit in April next will come into benefit.
Ceisteanna—Questions. Oral Answers. - Insurance Benefit.
2.
Persons becoming insured for the first time on the removal of the remuneration limit will have sufficient contributions paid for unemployment benefit, disability benefit and maternity benefit after 26 weeks and for widow's pension after three years of employment which is insurable for those benefits. They will, on entry, be granted credited contributions to satisfy other contribution requirements. In the case of retirement and old age, contributory, pension, while three years paid contributions will satisfy one of the conditions, there is, of course, the further requirement that a person must have entered insurance before reaching a particular age.
Persons who had previous insurance under the Social Welfare Acts may already have sufficient paid contributions when they again become employed contributors in April next. Credited contributions will also be granted to such persons to satisfy other contribution conditions but not in relation to pensions, for which insurance could have been preserved by the payment of voluntary contributions.
Persons becoming insured for occupational injuries benefit, which does not depend on contribution conditions, will be immediately covered for that benefit.
I should like to ask the Parliamentary Secretary if a person earning £2,800, or more, will have any insurance?
There is a ceiling of £2,500 on the scheme and he will be paid pay-related up to that ceiling of £2,500.
And after that nothing?
I should explain that pay-related contributions will only be up to £2,500.
When the new national pay agreement comes into force a lot of people will reach that limit.
They will be covered. It is only in regard to the pay-related aspect of insurance that there is a ceiling of £2,500.
They will be covered for insurance?
Yes.
Is the Parliamentary Secretary aware of a problem being created for people who now come under benefit, are near retiring age and have been out of benefit for a number of years? A difficulty is being created with regard to their superannuation scheme from their existing employers and the small retirement pension they will now receive. I am talking about a man going out between now and the end of this year because I understand there is a problem in that regard.
With regard to persons who have previously been insured and ceased to be insured because of the £1,600 limit, there will be credit given on their previous contributions. They do not lose by having been previously insured because this will be taken into consideration.
I understand that there are some pension schemes that are subsidiary towards any social welfare contributions which the recipients receive. In other words, the insurance company concerned benefit by any amount paid by social welfare towards this individual. Is the Parliamentary Secretary aware of such a situation in regard to pension schemes that exist in some employments?
Most superannuation schemes have been negotiated by organised workers through their trade unions. There was a reference in the national pay agreement that renegotiation on such schemes may take place. As the Deputy will appreciate, the question of private superannuation schemes would be primarily one between workers' unions and their employers. I am satisfied that the interest of workers will be protected by their trade union organisations.