Written Answers. - Social Insurance.
Bernard J. Durkan
Ceist:
326
Mr. Durkan
asked the
Minister for Social, Community and Family Affairs
the estimated number and categories of wage earners who, arising from previous practices, still fail to qualify for disability or invalidity benefits, with particular reference to those on superannuation or whose contributions were otherwise insufficient to meet requirements; and if he will make a statement on the matter.
[6005/01]
Bernard J. Durkan
Ceist:
327
Mr. Durkan
asked the
Minister for Social, Community and Family Affairs
the number of persons whose application for disability benefit or invalidity pension was not approved on the grounds of having contributions which would not qualify them, if any State or semi-State employees or former employees of such bodies fall into this category; if he has any plans to improve the situation; and if he will make a statement on the matter.
[6006/01]
It is proposed to take Questions Nos. 326 and 327 together.
To qualify for social insurance benefits and pensions a person must have a certain standard of PRSI contributions at the appropriate PRSI rate. There are different rates of PRSI contributions which give entitlement to different levels of benefits. In general, the rate of PRSI contribution payable is determined by the nature of the employment and the amount of the employee's earnings in any week.
Most workers pay PRSI class A contributions, which provide cover for all social insurance benefit and pensions, including disability benefit and invalidity pension. However, people who earn less than £30 a week pay PRSI class J contributions, which provide cover for occupational injuries benefits only.
The main other PRSI contribution classes are as follows. Permanent and pensionable workers in the public sector generally pay modified rates of PRSI contribution – classes B, C and D – which provide cover for a limited range of benefits, which do not include cover for disability benefit and invalidity pension.
Such employees do, however, have their own occupational sick pay arrangements which, in general, provides for full pay for up to six months and half-pay for another six months. Where entitlement to sick leave with pay is exhausted, depending on the circumstances, a person can qualify for sick pay at pension rate, the level of which is determined by the length of service. Since 6 April 1995, all new recruits to the public service are insured at the PRSI class A rate.
Non-commissioned officers and enlisted personnel of the Defence Forces are insured at the PRSI class H rate, which provides cover for most social insurance benefits, including disability benefit and invalidity pension. However, only limited benefits are payable during service. Self-employed people are insured at the PRSI class S rate, which provides cover for old age, widow/widower's and orphan's pensions, maternity and adoptive benefits and bereavement grant.
According to the latest statistics available on the insured population for the 1998-99 tax year, out of a total of 1,955,000 people insured for social insurance purposes, some 1,574,000 – 81% – people are insured for disability benefit and invalidity pension purposes. A further 10,500 – 0.5% – non-commissioned officers and enlisted personnel of the Defence Forces are insured for disability benefit and invalidity pension on leaving the Defence Forces.
In order to qualify for disability benefit a person must be incapable of work and satisfy certain PRSI contribution conditions. To qualify for invalidity pension a person must be permanently incapable of work and satisfy certain PRSI contribution conditions. Contributions paid at PRSI classes A, E, H and P count towards entitlement to disability benefit, while contributions paid at PRSI classes A, E and H count towards invalidity pension. Where a person is insured at one of these PRSI contribution classes, the payment of separate superannuation contributions will not have any impact on their entitlement to disability benefit or invalidity pension.
Of a total of 1,832 claims for invalidity pension which were rejected in 2000, slightly over 400 – 22% – were on the basis of a deficiency in their PRSI contribution record. It is not possible to identify the numbers of these rejected cases which relate to current and former public sector workers. Similar statistics are not available for disability benefit.
In view of the occupational sick pay and disability pension arrangements for public sector workers and the fact that all new recruits to the public service are now insured for all social insurance benefits and pensions, there are no plans to make any further changes in this area.
