Róisín Shortall
Ceist:256 Ms Shortall asked the Minister for Social, Community and Family Affairs the reason full-time students do not qualify for credits; and if he will make a statement on the matter. [9098/01]
Written Answers. - Social Welfare Code.
Regulations provide for the award of credited PRSI contributions – credits – to a former student who re-enters employment which is insurable at full rate PRSI following a course of full-time education which commenced before he or she reached the age of 23 years. This provision is subject to the rules which apply to credits generally, in particular, the condition that these can only be awarded to people who were previously in insurable employment.
The purpose of these credits is to ensure that former students are not penalised for any brief earlier attachment to the labour force, for example, by virtue of having engaged in insurable summer work. These credits are awarded from the date of the beginning of the relevant contribution year, currently 6 April, up to the date the insured person re-entered insurance as an employed contributor. In addition, they are awarded in respect of the two previous contribution years before re-entry into insurable employment. The credits are reckonable only for short-term benefits, for example, disability benefit, maternity benefit, etc. In addition, participants on the back to education scheme, the vocational training opportunities scheme or any other approved course which qualifies for the retention of unemployment payments who fulfil the general rule for the award of credits are awarded a social insurance credit in respect of periods spent on these courses. The class of credit awarded depends on the value of the last paid contribution.
As I stated, the underlying requirement for entitlement to the award of credited contributions is that a person must have worked previously and paid PRSI contributions. The rationale for this condition centres on the general principle that there should be a reasonable link between entitlement to benefit and a recent participation in the active labour force.