Marian Harkin
Question:519. Deputy Marian Harkin asked the Minister for Social Protection if she will consider introducing pension benefits for women working on farms; and if she will make a statement on the matter. [24806/22]
View answerTuesday, 17 May 2022
Questions (519)
Written answers
Spouses who are actively engaged in a commercial partnership, including the operation of a farm, are treated as individual self-employed contributors in the social welfare code. In these cases both spouses are liable to pay PRSI (Class S) contributions which may entitle them to certain benefits such as the State Pension.
Provision also exists for people to have their partnership recognised retrospectively on provision of appropriate evidence that a commercial partnership existed for the period in question. When a partnership is recognised retrospectively, both partners incur a liability to pay self-employed PRSI for the years in question and build up a social insurance record which will be used in determining their entitlement to social welfare benefits.
However, Section 110 (1) of the Social Welfare (Consolidation) Act 2005 restates a condition in earlier social welfare legislation that in order to qualify for a State Pension (Contributory) a self employed contributor must have paid at least one year’s self employment contributions prior to reaching age 66.
Those with few or no PRSI contributions paid over the years may instead qualify for the State Pension (Non-Contributory), which is a means-tested pension, financed by the Exchequer, and paid up to 95% of the maximum rate of the State Pension (Contributory).
The Pensions Commission was established in November 2020 to examine the sustainability of the State Pension system and the Social Insurance Fund. The Commission was an independent body comprised of knowledgeable and experienced academics, pension experts, members of civil society and representatives of workers and employers.
The Pensions Commission's Report was published on 7th October 2021. The report is a comprehensive report that takes account of an assessment of various analyses of population, labour force and expenditure projections; an examination of international approaches; and responses to an extensive consultation process. It established that the current State Pension system is not sustainable into the future and that changes are needed.
In the interests both of older people and future generations of older people, the Government is considering the comprehensive and far reaching recommendations in the Pensions Commission's Report very carefully and holistically. My officials are examining each of the recommendations and consulting across Government through the Cabinet Committee system. The views of the Joint Committee on Social Protection, Community and Rural Development and the Islands and the Commission on Taxation and Welfare are being considered as part of these deliberations. I intend bringing a recommended response and implementation plan to Government in the coming weeks.
The State Pension is the bedrock of the pension system in Ireland. It is extremely effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.
I hope this clarifies the matter for the Deputy.