The Self-Employed and the Old Age Contributory Pension

FIRST ENQUIRY QUESTIONS WHETHER INTERNATIONAL HUMAN RIGHTS STANDARDS WERE RESPECTED IN STATE PENSION ELIGIBILITY FOR

SELF-EMPLOYED COUPLE

Irish Human Rights Commission recommends changes to how

public policy is formulated

It would appear that international human rights standards, such as the European Code of Social Security and the European Convention on Human Rights (ECHR), have not been entirely respected according to an enquiry report by the Irish Human Rights Commission (IHRC), in relation to a decision by the (then) Department of Social, Community and Family Affairs to deny the Old Age (Contributory) Pension (OACP) to a self-employed married couple who had paid PRSI.

The IHRC has subsequently advocated that international human rights standards be closely examined in the formulation of public policy and legislative proposals.

The Social Welfare Act 1988 made social insurance contributions compulsory for the self-employed for the first time. However, due to a requirement to enter this scheme prior to the age of 56, the married couple were caught in a situation where they had to pay contributions into a scheme from which they could receive no benefit. A half-rate OACP was introduced under the Social Welfare Act 1999 as an attempt to address this discrepancy, but again the husband was excluded due to his age in 1988.

The couple requested the IHRC to conduct an enquiry into the matter and in December 2004, the IHRC acceded to the request. This was the first enquiry to be conducted by the IHRC. The IHRC has the power to conduct enquiries into issues connected with the protection of human rights, either of its own volition or at the request of any person who has a sufficient interest in the matter. Such enquiries must be connected to at least one of the following functions of the IHRC:

– to review law and practice or

• to consult with national or international bodies or agencies or

• to make recommendations to the Government or

• to promote understanding and awareness of the importance of human rights.

In the exercise of its enquiry function, the IHRC does not act as an adjudicatory body or a source of remedy.

Today the IHRC launched its first report on the enquiry, namely; ‘The Self-Employed and the Old Age Contributory Pension: Report on an Enquiry into the Impact of Certain Provisions of Social Welfare Legislation on the Self-Employed’.

The IHRC report makes the following recommendations and observations:

– It would appear that international human rights standards such as those under the European Code of Social Security and the European Convention on Human Rights have not been entirely respected.

– The advanced age of the person alone should not exclude him/ her from an old age benefit.

– A reduced benefit should be paid to those elderly persons who contributed to the social insurance scheme as self-employed persons expecting on retirement to receive an OACP but who were denied this benefit because they did not satisfy the minimum period of contributions by reason only of their advanced age.

– In the specific instance of this married couple, a half-rate OACP should be paid to the husband due to the fact that he was only a few months short in contributions from qualifying for such a pension and would have so qualified had it been legally possible to credit him with his wife’s contributions.

– A number of the international human rights instruments to which Ireland is a party and which have been considered in this report are not enforceable in Irish Law. It is therefore vitally important in these circumstances that the relevant law in the State mirror the standards set forth in such instruments.

– More broadly, the IHRC advocates that international human rights standards be closely examined in the formulation of public policy and legislative proposals in the field of social security. This is especially important in the formulation of pensions policy for older persons.

"I want to warmly welcome this report and to compliment the Chief Executive of the Irish Human Rights Commission, Dr Alpha Connelly, who conducted the enquiry on behalf of the Commission.

This meticulously researched and carefully argued report makes very clear that human rights concern ordinary everyday matters as well as major global issues. It argues persuasively for redress by the State even at his late stage to undo a wrong which has been ignored up to now and which has caused financial loss and hurt – in this case the right of particular individuals to enjoy a benefit to which they have contributed."

Dr Maurice Manning, President, IHRC

"The human rights instruments referred to in this report must be considered in the formulation of public policy and legislative proposals in the field of social security, particularly for vulnerable groups such as older persons".

Dr Alpha Connelly, Chief Executive, IHRC

NOTE FOR EDITORS

The ‘State Pension (Contributory)’ replaced the OACP from 29 September 2006 by virtue of section 4(3) of the Social Welfare Law Reform and Pensions Act, 2006.

ENDS

For further information please contact:

Martin Mackin/ Catherine Logan

Q4PR – 01 475 1444

087 814 5030 / 086 811 4785

Click here to download a copy of the Pensions Enquiry Report.pdf (1051 KB)