Dáil Éireann Debate, Tuesday - 13 November 2018
586. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection her plans to address the issue of persons, including the self-employed, who have made contributions towards their pension but do not qualify for a payment due to qualification restrictions; if a pro rata pension can be considered in such cases or failing that, a refund of contributions; and if she will make a statement on the matter. [47198/18]
View answerThere are a number of payments and pensions paid by my department to people over State pension age. One of these is the State pension (contributory), qualification for which is based on a number of criteria, including that a minimum of 520 qualifying contributions have been paid into the Social Insurance Fund. For those who have paid the required contributions at a reckonable rate – including Class S (self-employed) - they will be used in the calculation of their entitlements.
I believe that it is reasonable to require people who seek a contributory pension to have made at least 10 years paid contributions into the Social Insurance Fund which finances it.
Where a person aged 66 or over does not satisfy the conditions to qualify for a State pension (contributory), or qualifies for less than the maximum rate, they may instead qualify for one the following -
The means-tested State Pension (non-contributory) which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the SPC; or
An increase for a qualified adult (based on their own means), amounting up to 90% of a full rate SPC pension where their spouse has a contributory pension; or
Where their spouse/civil partner is deceased, a widow's/widower's/civil partner's contributory pension, which they may claim either based on their spouse's or their own social insurance record. The qualifying conditions for this require fewer contributions paid (260) than the State pension (contributory), and the maximum personal rate for those aged 66 or over is €243.30, i.e. the same as the maximum rate of the SPC, with allowances (notably the Living Alone Allowance) payable where applicable.
Refunds of PRSI arise when contributions from employers and employees have been paid in error. There are a number of reasons why a person might be paying the wrong PRSI rate, the most common of which is where an employee over 66 working and continuing to pay PRSI, where there is no requirement to do so.
Another case is contributors, who enter insurable employment, either as employees or self-employed, after they have attained the age of 56. If they have no entitlement to a State Pension (Contributory or Non Contributory) then the pension element of the contributions paid by both employed and self-employed contributors may be refunded.
I hope this clarifies the matter for the Deputy.
