Farm Retirement Scheme Eligibility

Dáil Éireann Debate, Tuesday - 18 September 2012

Tuesday, 18 September 2012

Questions (1422)

Michael Moynihan

Question:

1422. Deputy Michael Moynihan asked the Minister for Agriculture; Food and the Marine if he will clarify an anomaly which has shown up on the system where a farmer has retired under the EU Commission early farm retirement scheme at the age of 55 years and was advised that participation in the scheme would cover any PRSI contributions necessary to allow them to qualify for the full contributory pension at age 66 years, but it has now transpired that there was no PRSI paid even though the pension was taxable, they now do not qualify for a full contributory pension; if he will investigate same; and if he will make a statement on the matter. [38832/12]

Written answers

Minister for Agriculture, Food and the Marine

Payments under the Early Retirement Scheme are classified as Class M and as occupational pensions for PRSI purposes. While occupational pensions are taxable, PRSI is not deducted from occupational or Department of Social Protection pensions.

Compulsory PRSI deductions are not made from payments under the Early Retirement Scheme. Subject to certain conditions, voluntary contributions may be made up to age 66 in order to qualify for the State Contributory pension (Old Age Contributory). Enquiries should be made to the Department of Social Protection.