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Social Welfare Code

Dáil Éireann Debate, Tuesday - 5 April 2022

Tuesday, 5 April 2022

Ceisteanna (533, 534, 535, 536)

Neale Richmond

Ceist:

533. Deputy Neale Richmond asked the Minister for Social Protection if the benefit payment for 65-year-olds is means tested; and if she will make a statement on the matter. [18246/22]

Amharc ar fhreagra

Neale Richmond

Ceist:

534. Deputy Neale Richmond asked the Minister for Social Protection if a type of person (details supplied) would qualify for the benefit payment for 65-year-olds; and if she will make a statement on the matter. [18247/22]

Amharc ar fhreagra

Neale Richmond

Ceist:

535. Deputy Neale Richmond asked the Minister for Social Protection if a type of person (details supplied) would qualify for the benefit payment for 65-year-olds; and if she will make a statement on the matter. [18248/22]

Amharc ar fhreagra

Neale Richmond

Ceist:

536. Deputy Neale Richmond asked the Minister for Social Protection if a type of person (details supplied) would qualify for the benefit payment for 65-year-olds; and if she will make a statement on the matter. [18249/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 533 to 536, inclusive, together.

The Benefit Payment for 65 Year Olds was introduced on 25th January 2021, in line with the Programme for Government commitment, to provide a benefit payment for people who are 65 and who retire at age 65 but do not qualify for a State pension until they reach pension age of 66. Those who qualify for the payment are not required to sign on, partake in any activation measures or be available for and genuinely seeking work which is generally the case for recipients of jobseeker payments.

The benefit payment, which is not means tested, is provided under the Jobseeker’s Benefit and Jobseeker’s Benefit (Self-Employed) social insurance schemes in accordance with the relevant provisions of the Social Welfare Consolidation Act 2005 as amended.

One of the qualifying conditions for Benefit Payment for 65 year Olds is that a person must no longer be engaged in employment or self- employment. However, customers may continue to work in subsidiary employment while in receipt of Benefit Payment for 65 Year Olds, provided that the remuneration or profit from the occupation does not exceed €7,500 per annum or €144 on a weekly basis. Subsidiary employment is defined as work that could have been done while a person was in full-time employment and outside their normal working hours. Where a person has more than 117 contributions in the 3 years prior to becoming unemployed there is no income limit applied.

A person with investment income subject to PRSI Class K over €7,500 per year would not be eligible to any benefit payment from my Department.

Class S Self-employed contributors pay PRSI on a wide variety of self-employment income. These contributions help to ensure that individuals qualify for social welfare benefits, including pensions. The qualifying conditions for Jobseekers Benefit (Self-Employed) include the requirement that a person has completely ceased self-employment. For that reason, individuals who continue to pay Class S PRSI on a variety of income sources would not satisfy the conditions for Benefit Payment for 65 year olds as they are not regarded as having ceased self-employment; they continue to pay Class S PRSI and are to be regarded as being in insurable self-employment.

A person with distributions from an Annual Retirement Fund of over €7,500 per year would not qualify for the Benefit Payment for 65 year olds as they would be deemed to be in insurable employment.

Any person aged 65 who does not qualify for the benefit payment may apply for the means tested Jobseekers Allowance. The maximum rate of payment is also aligned with the weekly rate of payment for the Benefit Payment for 65 year olds, which is €208 and increased allowances are paid for qualifying adult and child dependents. A person can also be engaged in limited employment and may still qualify for a jobseeker's allowance payment subject to satisfying the scheme conditionality.

The issue regarding Class S PRSI contributions arising solely from personal pensions has been raised with my Department and the matter is under consideration.

I hope that this clarifies the position at this time.

Question No. 534 answered with Question No. 533.
Question No. 535 answered with Question No. 533.
Question No. 536 answered with Question No. 533.
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