Niamh Smyth
Question:696. Deputy Niamh Smyth asked the Minister for Social Protection if a claim to a reduced pension by a person (details supplied) will be examined; and if she will make a statement on the matter. [45082/24]
View answerTuesday, 5 November 2024
Questions (696)
Written answers
The person concerned will reach pension age on 15 January 2025. An application for State Pension (contributory) was received on 16 August 2024.
To be eligible for the standard state pension (contributory) an individual must have at least 520 full-rate contributions. To qualify for a mixed insurance pension, 520 employment contributions are required, of which at least 260 must be full-rate contributions with the remainder made up of modified contributions.
The records of my Department show the person concerned has a total of 123 full-rate paid contributions and 2,222 modified rate contributions. As this falls short of the requisite 520 full-rate contributions for the standard State pension (contributory) and the 260 full-rate contributions for a mixed insurance pension, the person concerned was notified on 2 October 2024 that they did not qualify for a pension.
Class A contributions paid by the person concerned during the 1990s are not considered reckonable for pension purposes as they were paid as part of subsidiary employment. Earned income would be liable for PRSI regardless of future pension entitlement. Typically, subsidiary employment would be liable for Class J PRSI, which is not reckonable for pension and as such would be paid at a lower rate than Class A PRSI.
Since 1 January 2024, state pension (contributory) has become more flexible. A person can claim their pension at any age between 66 and 70. This allows a person to continue to pay PRSI after age 66 to improve their contribution record. If the person concerned takes up insurable employment and pays full-rate contributions, it will be open for them to re-apply for state pension (contributory) at a later stage. I hope this clarifies the position for the Deputy.