Dáil Éireann Debate, Tuesday - 12 July 2016
377. Deputy Noel Grealish asked the Minister for Social Protection the year in which it became possible for farmers to pay a class S PRSI contribution for pension purposes; the scheme which was in place for farmers to pay PRSI before that time; and if he will make a statement on the matter. [20748/16]
View answerSelf-employed farmers, as with other self-employed individuals, became liable for PRSI with effect from 6 April 1988. Prior to this, self-employed individuals, including self-employed farmers, were not liable to pay PRSI and, therefore, were not covered for social insurance based benefits and pensions.
Self-employed farmers currently pay PRSI at the class S rate of 4% and are covered for long term social insurance benefits and pensions, including the State pension (contributory), widow’s, widower’s or surviving civil partner’s (contributory) pension, guardian’s payment (contributory), maternity benefit and adoptive benefit. In addition they will gain access to the new paternity benefit this September and legislation is before the House at the moment on the matter.
To establish entitlement to State pension (contributory), a contributor must, in the first instance, have paid at least 520 qualifying contributions by the time they reach pensionable age, currently 66 years. Once this condition is satisfied, a full or reduced weekly rate of pension is payable depending on the yearly average number of contributions paid over the period from commencement of employment/self-employment up to pension age (66).
Employees and the self-employed who reach 66 years and who do not satisfy the conditions for entitlement to the State pension (contributory) are eligible to apply for the means-tested State pension (non-contributory).
