Under current social welfare legislation, a self-employed contributor will not be regarded as satisfying the contribution conditions for State pension (contributory) unless the person has paid self-employment contributions in respect of at least one contribution year prior to reaching age 66 and all self-employment contributions payable have been paid.
While the person concerned has paid self-employment (Class S) contributions for each of the tax years 2006 to 2014 inclusive, all of these self-employment contributions were paid after the person reached age 66. Therefore, under the governing legislation, the eligibility conditions for State pension (contributory) have not been satisfied. These self-employment contributions are not qualifying contributions for State pension (contributory) purposes. They cannot be included with the person’s 226 paid full-rate contributions for calculation of pension entitlement.
The person concerned was notified of this decision in writing on 19 November 2019. Following a requested review, this decision remained unchanged, and the person was advised accordingly on 11 March 2020. Their appeal of this decision was disallowed by the Social Welfare Appeals Office on 27 July 2020.
A combination of both PAYE and self-employed contributions can be considered for pension purposes, provided that self-employment contributions have been paid in respect of at least one contribution year prior to reaching age 66 and all self-employment contributions payable have been paid.
In order to be admitted as a voluntary contributor, 520 qualifying paid contributions are required, and an applicant must apply within 60 months of the end of the year in which they last paid or were credited a social insurance contribution prior to the year in which they wish to pay. The person concerned cannot be accepted as a voluntary contributor, as they do not satisfy the eligibility conditions for the scheme. The 60-month limit for application, as prescribed in social welfare legislation, has elapsed. Voluntary Contributions cannot be awarded for a period where compulsory contributions were due.
Compulsory Social Insurance (PRSI) for employees commenced in 1953 and for the self-employed in 1988. Refunds of PRSI arise when contributions from employers and employees have been paid in error, which is not the case for the person concerned, as compulsory PRSI was paid at the correct rate for the relevant periods of employment and self-employment. The pension element of the contributions paid by both employed and self-employed contributors may be refunded in the case of contributors who entered insurable employment either as employees or self-employed after they had attained the age of 56 and who have no entitlement to either a State pension (contributory), or a State pension (non-contributory). According to the records of my Department, the person concerned entered insurable employment on 13 July 1965, when they were 16 years of age. Therefore, the pension element of their contributions paid is not refundable.
It remains open to the person concerned to apply for State pension (non-contributory). On receipt of a completed application form, their eligibility for this pension can be determined and they will be notified in writing of the decision.
I hope this clarifies the position for the Deputy.
