Currently, PRSI-credited contributions or credits are awarded to former employees only, to cover gaps in social insurance where they are not in a position to pay PRSI contributions, such as during periods of unemployment or illness. Self-employed workers do not qualify for credits as one social insurance payment per annum provides the full 52 contributions for that year.
The farm assist scheme was introduced in 1999 to provide income support for low-income farmers. It replaced the former smallholder's unemployment assistance payment, in line with the then arrangement for unemployment assistance, including the smallholder's unemployment assistance and the pre-retirement allowance. The non-welfare income of farm assist payment recipients was exempt from the payment of class S PRSI for self-employed workers. Recipients of the farm assist payment who had previously paid class S social insurance contributions had the option of making voluntary contributions to maintain their social insurance record, provided they satisfied the qualifying conditions to do so and many chose to do so.
Since 1 January 2007, the exemption from class S PRSI has been removed and those self-employed persons receiving jobseeker's allowance or the farm assist payment are subject to class S PRSI as self-employed contributors on their self-employed income, provided their annual income is €5,000 or more. Any self-employed person, including farmers, with an annual income of less than €5,000 can make voluntary contributions to maintain his or her social insurance record for pension purposes, once qualified to do so.
Recipients of Farm Assist have, and always had, the option of paying Voluntary Contributions, subject to satisfying the qualifying conditions to do so. In the period 1999 to 2006, the paid contribution requirement for entitlement to avail of the Voluntary Contributions scheme was a minimum of 260 weeks PRSI contributions in either employment or self-employment.
While a person must have paid at least 520 weeks PRSI contributions and apply within 60 months of the end of the contribution year in which they last paid PRSI contributions to qualify to become a voluntary contributor, in exceptional circumstances, this rule may be relaxed where a person can demonstrate that an application was not feasible within the time limit.
An application to become a voluntary contributor submitted by a Farm Assist recipient who was exempted from making PRSI contributions over the period from 1999 to 2006, can be examined on a case by case basis, under the relevant provisions.
In the absence of exact numbers of farm assist recipients with annual income in excess of the income threshold for paying class S PRSI prior to 2007 (i.e. €3,174 pa), it is not possible to estimate the numbers of persons affected.
A person aged 66 or over with insufficient PRSI contributions to qualify for a full State Pension (Contributory) may claim a State Pension (Non-contributory) if he or she has an income need. The maximum weekly personal rate is €254, which is more than 95% of the maximum State Pension (Contributory) rate. While it is means-tested, there are very significant disregards to the benefit of claimants and a significant majority of such pensioners are paid at the full rate.
I hope this clarifies the matter for the Deputy.
