The Benefit Payment for 65 year olds was introduced in line with the Programme for Government to provide a benefit payment for 65 years olds, who must or who choose to retire at 65, but will not be eligible to receive a State pension until pension age, which is currently 66.
Applicants must satisfy the PRSI conditionality for payment which includes having a specified number of contributions paid in the Governing Contribution Year (GCY), which is the second last complete tax year. For example, for a claim in 2021 the second last complete tax year is 2019.
A person must have paid 104 PRSI insurable employment contributions at class A, H or P or paid 156 class S contributions if they are self-employed. The second contribution condition requires that a person must also have 39 reckonable contributions paid or credited in the GCY. At least 13 of these contributions must be paid. Where a person does not have 13 paid contributions in the GCY they can be from 2 years before the GCY, the last complete tax year or the current tax year; or they have at least 26 reckonable contributions paid in both the GCY and the year immediately preceding the GCY.
The reason for the requirement to have paid contributions in the manner set out in legislation is to demonstrate a recent attachment to the workforce.
People retiring at age 65 should, in most cases, meet the required PRSI conditionality. Where a person does not satisfy the contribution requirement for receipt of the new payment, they may be eligible to apply for means tested Jobseeker's Allowance subject to satisfying the conditions for that scheme.
There are no plans to amend the contribution conditions of the scheme at this time.
I trust that this clarifies the position for the Deputy.
