Dáil Éireann Debate, Tuesday - 14 November 2006
153 Mr. Deenihan asked the Minister for Social and Family Affairs his views on altering the two year rule which prevents a person who has no social insurance benefits for more than two years from accessing benefits until they have made 26 contributions; and if he will make a statement on the matter. [37635/06]
View answerRegulations provide that where no employment contributions have been paid or credited in respect of an insured person for any two complete consecutive social insurance contribution years, an employment contribution shall not be credited to such person unless, since the end of the second of the said contribution years, twenty-six employment contributions have been paid in respect of such person.
While the contributions requirements differ across benefit schemes, in general a worker is required to have a minimum number of paid contributions over their working life and a minimum number of paid or credited contributions in the relevant tax year. The threshold of contribution conditions required to establish eligibility for a range of benefits provides alternative tests within each scheme to make it easier for people to establish an entitlement.
There is a general principle in the social insurance system that there should be a reasonable link between the amount that persons pay into the system over their potential working lifetime and their subsequent access to income replacement benefits and pensions.
This rationale is a key underpinning of the contributory principle and the ‘pay-as-you-go' nature of the PRSI system.
A range of mechanisms exist currently to enable those who are out of the workforce to maintain their insurance contribution record. These include
the voluntary PRSI contribution scheme,
the homemakers scheme and
awarding credited contributions The voluntary PRSI contribution scheme, the homemaker's scheme, and the award of credited contributions will not of themselves, establish entitlement to a social welfare benefit or pension but will assist towards it.
The range of opportunities available currently to assist workers take time out of the workforce for caring purposes is comprehensive. My department constantly monitors the need for amendments or modifications to existing provisions to ensure the social insurance system continues to meet social protection needs in a changing work and social environment.
