Michael Ring
Ceist:191 Mr. Ring asked the Minister for Social, Community and Family Affairs when a person (details supplied) in County Mayo will receive some of his PRSI money back. [16072/97]
Written Answers. - Social Welfare Benefits.
A self-employed person who enters social insurance for the first time after age 56 can claim a refund of the pension element of his-her social insurance contributions on reaching age 66, provided s-he has no entitlement to either a contributory or non-contributory old age pension.
The person concerned recently applied for an old age contributory pension. As he was over age 56 when he entered insurable self-employment his application was rejected. A decision on whether a refund of PRSI is due cannot be made until his entitlement to old age non-contributory pension is determined. In the event of him not qualifying for a non-contributory old age pension he would be due a refund of the pension element of PRSI contributions paid for 1988-89, 1989-90 1990-91, 1991-92 and 1992-93.
Richard Bruton
Ceist:192 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs if he has estimated the amount it would cost to extend the current concession which gives partial pension entitlement to persons with an average yearly contribution of between ten and 20 stamps per year to old age pension applications in such a way as it would give a similar concession to applicants for widows' pension; and if he will make a statement on the matter. [16075/97]
The qualification conditions for a widow's or widower's contributory pension are less onerous than those pertaining to old age contributory pension reflecting the different nature of the contingencies.
To qualify for the old age contributory pension, a person must,inter alia, have entered insurance at least ten years before pension age. This condition has been a feature of the scheme since its introduction in 1961. The purpose of the condition is to link entitlement to a pension with a reasonable level of contributions to the social insurance fund during the course of a person's career. A claimant must also satisfy a minimum yearly average condition from the date they first entered insurance.
To qualify for a widow's or widower's contributory pension a person may use the full insurance record or the record over the previous three or five years to satisfy the yearly average condition. Also a widow or widower can qualify on his-her own or on the late spouse's record. The two records cannot be combined to qualify for payment.
Estimates of the cost of extending the widow's widower's contributory pension to those with a yearly average of between ten and 23 are not readily available. However, initial estimates suggest that the cost could be of the order of £2 million, and, therefore, could only be considered in a budgetary context.
Liz McManus
Ceist:193 Ms McManus asked the Minister for Social, Community and Family Affairs if he will ensure that rent allowance provided by community welfare officers is not reduced when a woman has more than one child in view of the fact that rent allowance is currently decreased consequent to an increase in a single parent's payment arising from the birth of a second child; and if he will make a statement on the matter. [16125/97]
Under the supplementary welfare allowance scheme, a weekly supplement may be paid in respect of rent. Entitlement to the supplement is determined by the health board in the light of the circumstances of the case and the payment is normally calculated to ensure that the person, after payment of the rent has an income equal to the rate of supplementary welfare allowance appropriate to their circumstances, less £6. Weekly needs are considered to be the appropriate rate of SWA for each family size. All cash income a person has in excess of this amount is calculated as means when determining their entitlement to a rent supplement.
Any increase in income over and above the levels provided under the supplementary welfare allowance scheme will result in a decrease in the rent supplement rate payable. Single parents are paid £15.20 per week in respect of each child whereas the rate payable under supplementary welfare allowance is £13.20 per week.
When a single parent has a second or subsequent child and is awarded an increase of £15.20 per week, her rent supplement is reduced by £2 per week, that is £15.20 less £13.20. The result is that her overall income increases by £13.20 per week. This reduction has always been a feature of the rent supplement scheme. It would cost approximately £9.2 million per annum to abolish this clawback and it could only be considered in a budgetary context.
Gay Mitchell
Ceist:194 Mr. G. Mitchell asked the Minister for Social, Community and Family Affairs if he will consider the points raised by a person (details supplied) in Dublin 6W; and if he will make a statement on the matter in view of the valid points raised by the person concerned. [16183/97]
The person concerned in this question is currently in receipt of a preretirement allowance which is a means tested payment. Prior to that she was looking after an elderly relative who was in receipt of a prescribed relative allowance.
A retirement pension is payable at age 65 while an old age contributory pension is payable at age 66 subject, of course, to the fulfilment of the normal statutory conditions. There is no provision for payment of these pensions, in any circumstances, at an earlier age. Providing special pensions for carers when the caree dies, regardless of the carer's age, would have significant cost implications. I am arranging for a pension forecast to be done to see if the person concerned will qualify for a pension on reaching pension age. This will be sent directly to the person concerned as soon as possible.
Bernard Allen
Ceist:195 Mr. Allen asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the anomaly whereby long-term unemployed persons who go on a community employment scheme and upon the scheme terminating, go back to unemployment benefit, are no longer deemed to be long-term unemployed and thereby lose the grant under the national fuel scheme which they enjoyed prior to taking up this community employment scheme; and if he will address this serious and unjust anomaly and in particular look at the case of a person (details supplied) in County Cork. [16202/97]
The Social Welfare Act, 1996 provided for the extension of class A PRSI to community employment workers. Class A PRSI provides cover for the full range of benefits and pensions available under the social insurance system including, for example, unemployment benefit, disability benefit, maternity benefit, retirement pension, old age contributory pension, widow's contributory pension, treatment dental and optical benefits and occupational injuries benefit. The purpose of this measure was to enhance the PRSI status of community employment workers and to put them on a par with other class A workers.
In the case of persons who qualify or re-qualify for unemployment benefit, their earnings in the relevant tax year will determine whether or not they receive a graduated rate or the full rate of unemployment benefit. Persons entitled to a reduced or graduated rate of unemployment benefit are entitled to claim unemployment assistance if it is more beneficial to them. However, long-term unemployment assistance is not payable where the claimant is entitled to full rate unemployment benefit.
I should mention that provision was also made for existing community employment workers, i.e. those who had commenced their scheme prior to 6 April 1996, to be given the option of paying class A PRSI, if they wished, or of continuing with their existing class J PRSI. In the case of the person concerned she opted to switch to class A PRSI, and consequently qualified for full rate unemployment benefit.
I should mention also that secondary benefits can, however, be retained if the person transfers from a community employment scheme to a back-to-work allowance scheme or Jobstart, etc. As regards income-related secondary benefits such as rent allowance or mortgage supplements and the back-to-school clothing and footwear allowance available under the supplementary welfare allowance scheme, medical cards and differential rents, the position is that, in the normal course, former community employment workers who are solely dependent on a social welfare payment should continue, where appropriate, to receive these benefits.
The introduction of special concessionary arrangements for former CE workers would have both legislative and cost implications. I will keep the issue raised by the Deputy under review.