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Social Welfare Benefits

Dáil Éireann Debate, Wednesday - 30 June 2021

Wednesday, 30 June 2021

Ceisteanna (147)

Róisín Shortall

Ceist:

147. Deputy Róisín Shortall asked the Minister for Social Protection if she will consider matters raised in correspondence (details supplied) regarding the payment for persons who retire at 65 years of age; and if she will make a statement on the matter. [35230/21]

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Freagraí scríofa

The new Benefit Payment For 65 year olds has been introduced in line with the Programme for Government commitment and is designed to bridge the gap for people who are required to or who choose to retire at age 65 but who do not qualify for the State Pension until they reach age 66. Those retiring at age 65 should meet the required PRSI conditionality for the payment, having recently left employment.

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. The Benefit Payment For 65 year olds is not designed to provide that those outside employment for significant periods can qualify for a benefit in advance of any entitlement to a State pension.

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.

I trust that this clarifies the position for the Deputy.

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