andMr. Nealon asked the Minister for Social Welfare if, in view of the understandable lack of knowledge amongst the farming community of the exact details, workings and obligations under which full-time farmers pay PRSI and levies, he will make a statement outlining the steps to be taken by them on an annual basis especially in relation to the Revenue Commissioners, showing (a) the levels at which exemptions are granted from the various payments (b) the position of farmers over 66 years of age and (c) the position of farmers aged between 56 and 66; the use which is made of moneys paid by farmers which will not attract credits; if repaid, the proportion; when it is paid; the farmers who are exempt from the various payments; the levels where this occurs; and the position and plans for those who have not yet received profile forms.
Written Answers. - Fulltime Farmers' Taxation.
In the case of most farmers, self-employment PRSI contributions will be collected by the Revenue Commissioners at the same time as income tax and the health and employment training levies are being collected.
A farmer is liable to pay a contribution of 3 per cent or £208 (whichever is greater) on his reckonable income in the income tax year 1988-89. In the year 1989-90 the rate of contribution will be 4 per cent and in 1990-91 it will be 5 per cent. All reckonable income up to a specified ceiling (£16,200 in the current year) is liable for PRSI.
A farmer who is told by the Revenue Commissioners that he does not have to make a return of income is liable to pay a flat-rate contribution of £104 per annum unless his income is less than £2,500 per annum. If his income is less than £2,500 per annum he is not liable to pay PRSI for the self-employed.
PRSI for the self-employed applies to people between the ages of 16 and 66 only. Accordingly, a farmer who is 66 years of age or over is not liable to pay PRSI contributions.
To qualify for a contributory old age pension a person has to be in insurable employment or insurable self-employment before reaching age 56. Therefore, farmers who become insurably self-employed after they have reached age 56 cannot qualify for a contributory old age pension unless they have paid an adequate number of contributions in respect of previous insurable employment. They are however, liable to pay PRSI contributions until they reach old age pensions age. If, on reaching that age, they do not qualify for either a contributory or a non-contributory old age pension, they can claim a refund of the old age pension element of their contributions. The old age pension element is approximately 50 per cent of the contribution. It should be noted in respect of self-employed persons, including farmers, who become insurably self-employed after reaching age 56 that the contribution also includes cover for widows' and orphans' pensions. Widows could qualify for widow's contributory pension after three years' contributions have been paid and children could qualify for orphan's contributory allowance after 26 contributions have been paid.
All PRSI contributions paid by farmers under the Scheme for the Self-Employed are paid into the Social Insurance Fund. The fund is used to pay the pensions and other benefits of the Social Insurance Scheme.
Farmers who want more information about the scheme can get a copy of "Your Guide to PRSI for the Self-Employed" by contacting any office of my Department
The aspects of the matter which fall to be dealt with by the Minister for Finance are being answered in reply to Question Number 56.
120.
asked the Minister for Social Welfare the reason unemployment benefit has been paid to a person (details supplied) in County Kildare; and when payment of same will issue.
Entitlement to unemployment benefit is subject to the condition that a claimant must be available for and genuinely seeking employment.
The person concerned claimed unemployment benefit from 5 September 1988. Her claim was disallowed on the grounds that she was not genuinely seeking employment, as she had left her previous employment and not sought alternative employment.
She appealed against the disallowance and attended an oral hearing of her case on 10 November 1988. The appeals officer also decided that she was not genuinely seeking employment from 5 September 1988.
121.
asked the Minister for Social Welfare whether farmers and the self-employed over 56 on 6 April, 1988 should be expected to pay RSI pension contributions when they cannot qualify for contributory pensions.
To qualify for old age contributory pension a person must have entered social insurance at least ten years before pension age. This requirement has applied since the scheme was introduced in 1961. The same requirement applies in the case of self-employed persons.
Self-employed persons who are over age 56 on entering insurance will of course be able to build up entitlement to widow's contributory pension after three years' insurance. Furthermore, their insurance as self employed persons can also be combined with any previous insurance they may have had as employees and as voluntary contributors to establish entitlement to either the old age or widow's pension.
Self-employed persons who were over 56 on 6 April 1988 and who do not satisfy the means test for entitlement to old age non-contributory pension will be entitled to receive a refund of the old age pension element of any social insurance contribution they have paid.
The arrangements which have been made in bringing the self-employed within the social insurance system are equitable and represent a fair and reasonable way of involving the self-employed in sharing the costs of pensions generally.
122.
asked the Minister for Social Welfare when the appeal of a person (details supplied) in County Louth against the disallowance of disability benefit will be heard.
The person concerned was paid disability benefit to 25 August 1988 after which date payment was disallowed following an examination by a medical referee who expressed the opinion that he was capable of work.
He appealed against the disallowance and arrangements have been made to have him examined by a different medical referee as soon as possible. His entitlement to benefit will then be reviewed in the light of the medical referee's report.
123.
asked the Minister for Social Welfare the reason a person (details supplied) in County Dublin was obliged to obtain the certificates of three employers that no work was available before he would be adjudged eligible for unemployment assistance on Monday 14 November, 1988 in view of the fact that he was last employed on a FÁS scheme at Malahide Castle which closed down due to the absence of funds from the local authority.
Entitlement to unemployment benefit or assistance is subject to the condition, inter alia, that a person must be available for and genuinely seeking employment.
Local offices of the Department are required to ensure that claimants satisfy this and other conditions and claimants may be asked, from time to time, to show what particular efforts they are making to find work.
In the case in question the person was asked to complete a form which requested certain details regarding his availability for, and efforts to find work. Following the completion of this form and consideration of the details supplied, his claim for unemployment benefit was allowed. Payment will be made to the claimant this week.
124.
asked the Minister for Social Welfare if a person (details supplied) in County Cork is eligible for an invalidity pension.
The person concerned appears to satisfy the medical and contribution conditions for invalidity pension. A claim form has been posted out for completion by him to enable a formal decision to be made on his entitlement.