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State Pensions Payments

Dáil Éireann Debate, Tuesday - 11 April 2017

Tuesday, 11 April 2017

Ceisteanna (400)

Bernard Durkan

Ceist:

400. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which he can address the anomalies of the situation whereby persons with a mixture of PAYE and self-employed contributions may find themselves entitled to only a reduced rate of pension arising from the 1988 Act which now apparently does not enable the applicant to choose the most beneficial basis on which to claim a pension; and if he will make a statement on the matter. [18340/17]

Amharc ar fhreagra

Freagraí scríofa

All applications for state pension (contributory) must be assessed under the eligibility conditions set out in social welfare legislation. This provides that where an applicant for state pension (contributory) became a self-employed contributor on 6 April 1988 and, at any time before that date, was an employed contributor, the date on which they first entered insurance, or 6 April 1988, whichever is the more favourable, shall be regarded as their date of entry into insurance for the purposes of the application of the ‘yearly-average’ assessment.

As the person concerned did not become a self-employed contributor from 6 April 1988, the standard eligibility conditions for state pension (contributory) apply, and his date of entry into insurance was taken as 8 April 1967. According to the records of the Department, he has a total of 1,575 reckonable paid and credited contributions from that date of entry into insurance to end-December 2016 (the last complete contribution year prior to reaching pension age). This gives a yearly average of 32, which qualifies him for a reduced-rate state pension (contributory) of 90% of maximum rate, with effect from 8 April 2017.

I hope this clarifies the matter for the Deputy.

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