Vol. 511 No. 1
28 Mr. Browne (Carlow-Kilkenny) asked the Minister for Social, Community and Family Affairs the plans, if any, he has to allow the mixed rate insurance scheme, which at present covers old age pensions, to cover disability and invalidity. [23680/99]
The difficulties which gave rise to the need to introduce the mixed insurance pro rata pension arrangements do not apply in the case of other contingencies such as illness.
The problem in relation to entitlement to social insurance pensions for people with a mixture of full-rate and modified-rate PRSI were highlighted by a number of groups, including the Commission on Social Welfare a number of years ago. At that time, many people who entered insurance at the PRSI Class A rate early in their career and subsequently became insured for periods at the public service modified rate, faced problems in qualifying for a retirement or old age pension payment under the social insurance system, despite having contributed at the Class A rate for significant periods. Those concerned were not entitled to maintain their insurance cover for retirement or old age pensions by the payment of contributions on a voluntary basis.
Accordingly, in line with a commitment in the National Programme at that time, special arrangements were introduced for old age (contributory) and retirement pension purposes in 1991 to deal with these problems. The revised arrangements provided for the payment of pro rata pensions to the people concerned, which are in proportion to the periods of insurance they have completed at the Class A rate. These arrangements are similar to those which apply under EU regulations to people with a mixture of insurance in a number of different EU member states.
Since the introduction of these arrangements in 1991, a number of further changes have been made which are of relevance in this area. For instance, PRSI Class A contributions are payable by all new entrants to the public service, whether employed on a permanent and pensionable basis or otherwise, with effect from 6 April, 1995. In addition, the qualifying conditions for entitlement to the old age contributory pension were significantly eased in 1997, when entitlement to reduced rate pensions was extended to those with yearly averages of between ten and 19 contributions. Under this measure, many former public servants who had already qualified for pro rata pensions became entitled to enhanced pensions. As a consequence of the introduction of the measures I have outlined, many of the difficulties which gave rise to the need to introduce the pro rata pension arrangements have now been rectified.
On the Deputy's proposal for the introduction of pro rata disability benefit and invalidity pension schemes, it should be noted that public servants paying modified rates of PRSI have their own occupational sick pay arrangements. Accordingly, there is no need for separate social insurance provision for this category of employee in the event of illness. Furthermore, all public servants employed after April, 1995 are insured at the PRSI Class A rate and are covered for all social insurance benefits, including disability and maternity benefits, old age contributory, retirement and invalidity pensions.
(Carlow-Kilkenny): I am not aware of the situation in relation to public servants. My question relates to a person who would not qualify. Is there a category of worker who is not a public servant and can have stamps but who is disqualified under this scheme? Will the Minister agree that we could do without any further anomalies in new social welfare regulations? Has the Minister figures indicating how many people are involved and how many receive benefit under the pro rata scheme?
I have not got these figures. However, my officials, special adviser and I were at a loss to understand the point the Deputy was making in this question. If he has a particular case in mind, I will have it investigated. My officials are not aware of any recent case where somebody lost out under this scheme. The issue of a mixed rate applies mainly to public servants employed with effect from April 1995. Those employed before that date will qualify under the changes made to the scheme.
(Carlow-Kilkenny): I will be pleased to send on the details of my constituent's problem to the Minister. He did not dream up the fact that he will lose out under the system.
