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Dáil Éireann debate -
Tuesday, 18 May 1999

Vol. 504 No. 7

Written Answers. - Pension Provisions.

Breeda Moynihan-Cronin

Question:

266 Mrs. B. Moynihan-Cronin asked the Minister for Social, Community and Family Affairs if the introduction of the farm assist scheme will have a bearing on pension rights for farmers when they reach old age pension age in view of the fact that under this scheme they are no longer required to sign on and will no longer be receiving a credit contribution. [12561/99]

The position with regard to pension rights for claimants of the new farm assist scheme does not differ from that which applied in relation to the unemployment (smallholder's) assistance scheme.

The fact that farm assist claimants will no longer have to sign on the live register has no bearing on this position. The conditions for the award of credited contributions in respect of farmers claiming farm assist will be exactly the same as those which currently apply to unemployment assistance. Farmers transferring from unemployment (smallholder's) assistance to farm assist and who were previously entitled to credited contributions will, therefore, continue to be so entitled. These farmers, together with any new claimants who are entitled to credited contributions, will now be awarded those credited contributions in respect of contribution weeks rather than days of unemployment.

With regard to the PRSI position of farmers, claimants of the farm assist payment will, in the same way as claimants of unemployment (smallholder's) assistance, be treated as an excepted category for PRSI purposes in respect of their income from self-employment. This measure was put in place in the Social Welfare Act, 1999 to ensure that the position of the existing unemployment (smallholder's) assistance claimants would be maintained when they transferred to farm assist.

However, farmers who had been paying Class S – self-employment – PRSI contributions before they claimed unemployment (smallholder's) assistance were no longer able to pay these contributions. This continues to be the position when farmers who were hitherto paying Class S contributions now claim farm assist. While it remains open to them to apply to become voluntary PRSI contributors in order to maintain their social insurance records, I recognise that this may not be the most appropriate option. My Department will be reviewing the position to determine whether other arrangements can be put in place.

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