Dáil Éireann díospóireacht -
Thursday, 10 Dec 1998

Vol. 498 No. 3

Written Answers - Pension Provisions.

Bernard J. Durkan

Ceist:

144 Mr. Durkan asked the Minister for Social, Community and Family Affairs the categories of insured persons who cannot qualify for invalidity pension or contributory pension on the grounds of not having A1 contributions; and if he will make a statement on the matter. [27174/98]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

Pay related social insurance contributions are made by employers, employees and the self employed. The rate of PRSI contribution depends on the class of social insurance applicable which, in turn, determines the range of benefits and pensions to which contributors may, in due course, become entitled.

The majority of PRSI contributors are in the industrial, commercial and services sectors. Employees in these sectors are covered by class A social insurance and pay full rate contributions. These contributors build up entitlement over time to the full range of benefits and pensions provided under the system, including invalidity pension and all other contributory pensions.

Class H and class E contributors, consisting of enlisted personnel in the Defence Forces and certain ministers of religion respectively, are also covered for invalidity pension and all other contributory pensions. Self-employed contributors pay PRSI at class S and are covered for old age contributory pension and widow/er's contributory pension, but not for invalidity pension. Contributors at PRSI classes B, C and D, mainly civil and public servants recruited before April 1995, are covered for widow/er's contributory pension only.

Certain other employees, such as those earning less than £30 per week or under 16 years of age, are not covered for contributory pensions.

Persons who cease to become compulsory insured may opt to pay voluntary contributions at the appropriate rates. These contributions provide the same level of contributory pension cover, excluding invalidity pension cover, in respect of which the contributor was insured while either an employee or a self-employed person. Provisions also exist for the award, in certain circumstances, of credited contributions to persons in receipt of social welfare payments during periods such as illness or unemployment. Credited contributions help maintain a former full rate contributor's social insurance cover when for reasons beyond their control they are unable to make the requisite contributions themselves.