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Dáil Éireann debate -
Thursday, 25 Jul 1996

Vol. 468 No. 4

Written Answers. - Refund of Contributions.

Joe Walsh

Question:

767 Mr. J. Walsh asked the Minister for Social Welfare the reason self-employed PRSI contributors, who entered compulsory insurances after the age of 56 years of age, do not receive a full refund of their contributions. [16037/96]

To qualify for an old age contributory pension, a person must have entered insurance at least ten years before reaching pension age. This condition applies to all insured persons, including the self-employed.

Persons who enter social insurance after age 56, and who, therefore, are not in a position to fulfil this condition, may be entitled to a refund of the old age pension part of their contributions. They are not entitled to such a refund if they qualify for an old age non-contributory pension. Any refund at that stage includes interest. These arrangements were introduced when social insurance pension coverage was extended to the self-employed in 1988 and were in line with recommendations made at that time by the National Pensions Board.

Contributions payable by self-employed people also include cover for widow's, widower's and orphan's pensions, entitlement to which does not require entry to insurance prior to age 56. The question of refunding that element of the contribution does not therefore, arise.

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