Dáil Éireann debate -
Tuesday, 7 Dec 1999

Vol. 512 No. 3

Written Answers - Social Insurance.

Liam Aylward

Question:

272 Mr. Aylward asked the Minister for Social, Community and Family Affairs if he will allow persons who, due to their low income, were not required to make a return of income tax and were not liable for PRSI contributions to buy back their PRSI contributions to enable them qualify for pension. [25873/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

Those liable to pay PRSI are employees who earn £30 or more per week and self-employed people with an annual income of £2,500 or over.

I am assuming that the Deputy is referring to a self-employed person. In general, payment of PRSI by a self-employed contributor is made through the Revenue Commissioners. However, where a self-employed person is deemed to have no net tax liability, PRSI is not collected by Revenue. Such a case is notified to my Department by the Revenue Commissioners to determine if the self-employed person has a PRSI liability. Where a PRSI liability exists special arrangements are put in place under which PRSI is paid directly to my Department.

Not all cases classified as having no net tax liability by Revenue will have a PRSI liability. Examples of such cases with no PRSI liability include self-employed people with: (a) an annual income of less than £2500; (b) a pension under the Department of Agriculture, Food and Rural Development farm retirement scheme; or (c) an unemployment assistance or pre-retirement allowance payment from my Department.

In cases where a person is no longer covered by compulsory PRSI and is under 66 years of age, it is always open to them to become a voluntary contributor, provided they: (a) have at least 156 weeks PRSI paid under compulsory insurance in either employment or self employment; and (b) apply within 12 months after the end of the contribution year during which compulsory insurance was last paid as an employed or self employed contributor or during which a credited contribution was last awarded.

There is no provision for retrospective payment of contributions to achieve entitlement to a contributory pension and I have no plans to change these existing arrangements.

I would point out that there have been considerable improvements to the qualifying conditions for the old age contributory and retirement pensions over the last decade with a view to broadening contributory pensions coverage. In addition, a non-contributory pension is available to any person who fails to qualify for a contributory pension due to insufficient contributions, in the same way as it is available to every other citizen, resident in the State and subject to a means test.