Dáil Éireann Debate, Tuesday - 28 January 2014
372. Deputy Michael Creed asked the Minister for Social Protection if she will clarify the situation regarding voluntary PRSI pension contributions for persons on career breaks from the public service; and if she will make a statement on the matter. [3763/14]
Amharc ar fhreagraA person under the age of 66 who ceases to be covered by compulsory PRSI may opt to become a voluntary contributor, provided certain conditions are satisfied. The Voluntary Contribution scheme can only be availed of by those who have ceased compulsory insurance (as an employed or self-employed contributor) and do not have an entitlement to credited contributions. Application to become a voluntary contributor must be made within one year of the last paid or credited contribution.
Voluntary contributions continue to provide cover for certain long term benefits such as pensions. They do not give cover for short term benefits such as jobseekers, illness or treatment benefits.
To become a voluntary contributor a person must:
- have at least 364 weeks PRSI paid under compulsory insurance in either employment or self-employment,
- apply within 12 months after the end of the contribution year during which they last paid compulsory insurance or during which they were last awarded a credited contribution ('credit') and
- agree to pay voluntary contributions from the start of the contribution week after the week in which they cease compulsory insurance.
The minimum contribution requirement will increase to 468 in April 2014 and to 520 in April 2015, to bring it into line with the minimum number of paid contributions required to qualify for State pension contributory.
A person on a career break from the Public Service who satisfies these conditions may be admitted as a voluntary contributor.
