Dáil Éireann Debate, Thursday - 29 March 2018
396. Deputy Catherine Murphy asked the Minister for Employment Affairs and Social Protection further to Parliamentary Questions Nos. 273 of 8 February 2018 and 539 of 20 February 2018, the way in which persons who were or are engaged in a partnership agreement who are entitled to a pension payment as a result of Directive 2010/41/EU are notified of their right to claim a payment; and if she will make a statement on the matter. [14506/18]
Amharc ar fhreagra397. Deputy Catherine Murphy asked the Minister for Employment Affairs and Social Protection further to Parliamentary Questions Nos. 273 of 8 February 2018 and 539 of 20 February 2018, the sectors and the nature of work, or both, in which persons who were or are engaged in a partnership agreement are in receipt of a pension as a result of Directive 2010/41/EU; and if she will make a statement on the matter. [14507/18]
Amharc ar fhreagra398. Deputy Catherine Murphy asked the Minister for Employment Affairs and Social Protection the social protection benefits and payments that are applicable under Directive 2010/41/EU; and if she will make a statement on the matter. [14508/18]
Amharc ar fhreagra399. Deputy Catherine Murphy asked the Minister for Employment Affairs and Social Protection further to Parliamentary Question Nos. 273 of 8 February 2018 and 539 of 20 February 2018, if the pension entitlement of those in partnership agreements has been adopted on a mandatory or voluntary basis; and if she will make a statement on the matter. [14509/18]
Amharc ar fhreagraI propose to take Questions Nos. 396 to 399, inclusive, together.
Entitlement to state pension (contributory) is assessed on the basis of an applicant’s completed social insurance record and the eligibility conditions applicable on the date they reach pension age. It is not possible to determine a person’s pension entitlement until a pension application is received in the Department from the individual, and their social insurance record is examined by a Deciding Officer.
My Department identifies customers who appear to have an entitlement to state pension (contributory), in advance of reaching pension age (currently 66 years of age), to invite them to make a timely application for pension. This customer service initiative is aimed at helping approx. 14,000 applicants annually to receive their pension entitlement by the due date (currently their 66th birthday) and minimise late applications for pension.
Applicants, who according to the social insurance records held by the Department appear to satisfy the minimum eligibility conditions for state pension (contributory), are invited to apply. Determining details include the applicant’s name and address, (verified) dates of birth/death, date of entry into insurance and evidence of recent interaction with the Department. If the commercial partnership has been decided upon in advance of the customer’s 66th birthday, they may be included in this invitation process. Social Welfare legislation stipulates that the onus is still on the customer to apply. On receipt of a completed application, the person’s entitlement to state pension (contributory) is examined by a Deciding Officer and the person is notified of the outcome.
The aim of Directive 2010/41/EU is to lay down a framework for Member States to put into effect the principle of equal treatment between men and women who are engaged in an activity in a self-employed capacity or who are contributing to the pursuit of such an activity.
The provisions of the Directive relevant to Social Welfare (Articles 7 and 8) require the provision of social protection benefits including maternity benefit, to spouses/civil partners who are not employees or business partners but who participate in the activities of their self-employed spouse/civil partner performing the same tasks or ancillary tasks.
The requirements of this Directive, other than articles 7 and 8, have been catered for in existing national legislation, e.g. the Employment Equality Act 2000, Equal Status Act 2000, Maternity Protection Act 1994 (as amended). No specific amendments were required to the existing provisions of these Acts in order to comply with the requirements of the Directive in these areas.
Under the current eligibility criteria, a person must have started paying social insurance before their 56th birthday and must have paid 10 years (520 paid contributions) in order to qualify for a contributory State pension. If Class S contributions only commenced on foot of this Directive a person will not qualify for a State pension until 2024 at the earliest. The Department only has information on whether a Class S contribution was paid on an earned or unearned basis and cannot analyse contributions by sector or nature of work.
The extension of social insurance to these spouses/civil partners means that they will be liable to pay PRSI contributions on their annual self-employed income provided it exceeds an annual insurability threshold of €5,000. The payment of these contributions will entitle these spouses/civil partners to access social insurance benefits currently available to other self-employed workers. The principal social insurance benefits to which self-employed workers can establish entitlement are widows, widowers or surviving civil partner’s contributory pension, State pension contributory, maternity benefit, invalidity pension and treatment benefit which are required under the Directive.
The current system of social insurance operates on a mandatory basis only and does not provide for voluntary participation on the part of the contributors. Self-employed persons who earn €5,000 or more in a contribution year are liable for PRSI at the Class S rate of 4%, subject to a minimum payment of €500. The extension of social insurance to assisting spouses/civil partners can therefore only be on a mandatory basis.
Allowing participation on a voluntary basis could lead to the selection of bad risks and would undermine the social solidarity and contributory principles that underline the social insurance system.
The Deputy may wish to note that these provisions apply to spouse/civil partners who had previously been excluded from social insurance and apply regardless of the sector in which they operate. It therefore applies to all sectors of the economy, based on the circumstances of each individual “partnership” agreement.
