Dáil Éireann Debate, Wednesday - 24 April 2013
163. Deputy Clare Daly asked the Minister for Social Protection if she will review criteria on which the contributory pension is awarded to self-employed people who have an outstanding PRSI liability by ensuring that the pension is awarded from the date the person reaches pension age and any liability deducted from those payments, rather than preventing them from being awarded the pension until the liability is discharged. [19439/13]
View answerThe Revenue Commissioners are the primary collection agents of the Department in relation to PRSI. Income tax and PRSI payable by a self-employed contributor is treated as one aggregate sum in accordance with the provisions of social welfare legislation. Where a person applying for State pension (contributory) has been a self-employed contributor, the person must pay all outstanding PRSI contributions before they are deemed to satisfy the qualifying conditions.
I have no plans to change these conditions relating to the award of pensions. The State pension is a very valuable asset and it is important, therefore, that those who claim a State pension have paid sufficient PRSI contributions over a working life and discharge those liabilities in full.
The recently published Actuarial Review of the Social Insurance Fund found that self-employed persons enjoy greater value from the payment of social insurance than employed persons, in particular, due to the lower rate of PRSI paid.
