Regina Doherty says farmers treated unfairly in pension assessments
Farmers getting a lesser pension payment due to their PRSI contributions being interrupted during periods in receipt of farm assist may have been treated unfairly, the Minister for Employment Affairs and Social Protection, Regina Doherty, said last week.
She was responding to a Dáil question from Cavan-Monaghan Fianna Fáil TD, Brendan Smith.
When Farm Assist was introduced in 1999, it replaced the former smallholders’ unemployment assistance payment. Recipients of farm assist who had previously paid class S social insurance had the option of paying voluntary contributions to maintain their social insurance record, provided they satisfied all of the qualifying conditions.
Since January 1, 2007, the exemption from class S PRSI has been removed, and those receiving jobseeker’s allowance and farm assist are subject to class S PRSI as self-employed contributors on their self-employed income, provided their annual income is €5,000 or more.
Ms Doherty set out the options for the pensioners who had a period between 1999 and 2006 when they were exempt from paying PRSI contributions.
If over 66, with limited PRSI, they may claim a State non-contributory pension of up to €232.
It is based on an income need, not on social insurance. It is means tested, but d a significant majority are paid at the full rate.
Mr Smith referred to farmers who took up farm assist for a short time.
They continued to make tax returns, but were not informed by Revenue or by the Department that they needed to make a contribution to maintain their insurance record.
“The cases with which I am dealing all involve people who did not employ an accountant to file their tax returns because they were not in a financial position to do so.
“They made their returns themselves and were not aware that their insurance contribution record was being broken.
“They had always hoped, through making their insurance contributions, that on reaching pension age they would be entitled to a full contributory pension. Unfortunately, that is not happening now.”
Ms Doherty said the options that would have been available to them were to make those contributions or, just before retirement, to buy credits to supplement their annual contributions over their lifetime of work.
She committed to follow through to see how many people have been impacted, while also determining if the Department or Revenue informed people of the options available to them.
“What the Deputy has just brought to my attention seems unjust, so let us meet and talk about it further,” she said.
