Dáil Éireann Debate, Thursday - 8 March 2018
585. Deputy Paul Kehoe asked the Minister for Employment Affairs and Social Protection the reason voluntary contributions cannot be used for entitlement for invalidity pension; her plans to amend same to include self-employed persons who have been making voluntary contributions; and if she will make a statement on the matter. [11436/18]
Amharc ar fhreagraVoluntary Contributions are designed to facilitate employees or self-employed people who are no longer subject to compulsory PRSI, to pay contributions directly to the Department on a voluntary basis, in order to protect their future state pension (contributory), widow’s, widower’s or surviving civil partner’s contributory (pension) and guardian’s contributory payment entitlements.
A person under the age of 66 who ceases to be covered by compulsory PRSI may opt to become a Voluntary Contributor. There are a number of qualifying conditions attached to the voluntary contribution scheme. In order to become a voluntary contributor a person must (i) have a minimum of 260 to 520 contributions paid – dependant on the period he or she wishes to pay for, and (ii) apply within 60 months of the end of the year in which he or she last paid or was credited a contribution.
People who last paid PRSI at classes A, E or H pay a contribution of 6.6% of their reckonable income, subject to a minimum annual payment of €500 while those who last paid PRSI at class S pay a flat rate of €500. Those who last paid PRSI at classes B, C or D pay 2.6% or a minimum of €250 but do not qualify for state pension (contributory).
Voluntary contributors may access social welfare supports by establishing eligibility to assistance-based payments such as disability allowance. In deciding an assistance-based payments the means of husband/wife, civil partner or co-habitant will be taken into account in deciding on entitlement to a payment
The Government is committed to encouraging self-employment and entrepreneurship and this includes improving the level of PRSI based benefits available to self-employed people while ensuring the sustainability of the social insurance fund. A ny changes in the level of benefits available would be expected to have financial implications and any decision to improve these provisions would be a matter for Government to consider in the context of the Budget.
