Seamus Kirk
Ceist:274 Mr. Kirk asked the Minister for Social, Community and Family Affairs if he will introduce a pro rata pension scheme for the self-employed; and if he will make a statement on the matter. [2541/99]
Written Answers - Pension Provisions.
Both the self-employed and employees can qualify for a standard old age – contributory – pension, if they satisfy the qualifying conditions, namely that they entered social insurance before reaching the age of 56; have 156 full employment contributions paid; have a yearly average of at least 20 contributions paid and-or credited from 1953 to the end of the tax year prior to reaching pension age.
Where a person fails to satisfy the yearly average qualifying condition, s/he may qualify for a pro rata old age contributory pension, introduced in November 1997, if the yearly average is between ten and 19 and at least 260 contributions have been paid in total.
Where a person fails to satisfy the qualifying conditions at 2 and 3 above, she/he may qualify for a mixed insurance pro-rata pension if a mixture of full rate and modified rate social insurance contributions has been paid. I have announced the introduction of special old age contributory pension for those self-employed who were 56 years of age or over when social insurance was extended to the self-employed in April 1988, and as a result could not satisfy the first qualifying condition set out above. Title to this pension will be created from April next and payment will commence from October. This pension will be payable to those self-employed who were aged 56 or over when they entered social insurance in April 1988 and who have at least 5 years contributions paid since that date.
I consider that pension provision of the self-employed as outlined is adequate and I have no plans to make any further changes in this area at present. However, my Department will shortly be undertaking a general review of the qualifying conditions for receipt of both retirement and old age contributory pensions and I will report to the House on the outcome of that review in due course.