Social Welfare Act , 1994

PART I Preliminary

1 Short title and construction.

1.—(1) This Act may be cited as the Social Welfare Act, 1994.

(2) The Social Welfare Acts and this Act, other than Part VII, shall be construed together as one.

2 Definition.

2.—In this Act “the Principal Act” means the Social Welfare (Consolidation) Act, 1993.

PART II Increases

3 Social insurance benefits (new rates).

3.—(1) The Principal Act is hereby amended by the substitution for Parts I to IV of the Second Schedule thereto of the Parts set out in Schedule A to this Act.

(2) This section shall come into operation—

(a) in so far as it relates to unemployment benefit, on the 21st day of July, 1994,

(b) in so far as it relates to disability benefit, injury benefit, disablement gratuity and disablement pension, on the 25th day of July, 1994,

(c) in so far as it relates to retirement pension, invalidity pension and deserted wife's benefit, on the 28th day of July, 1994, and

(d) in so far as it relates to death benefit under section 60, 61 or 62 of the Principal Act, old age (contributory) pension, survivor's benefit, widow's (contributory) pension and orphan's (contributory) allowance, on the 29th day of July, 1994.

4 Social assistance payments (new rates).

4.—(1) The Principal Act is hereby amended by the substitution for Parts I and II of the Fourth Schedule thereto of the Parts set out in Schedule B to this Act.

(2) This section shall come into operation—

(a) in so far as it relates to unemployment assistance, on the 20th day of July, 1994,

(b) in so far as it relates to supplementary welfare allowance, on the 25th day of July, 1994,

(c) in so far as it relates to pre-retirement allowance, deserted wife's allowance, prisoner's wife's allowance, lone parent's allowance (other than lone parent's allowance payable in respect of a widow or widower), carer's allowance and prescribed relative allowance, on the 28th day of July, 1994, and

(d) in so far as it relates to old age (non-contributory) pension, blind pension, widow's (non-contributory) pension, lone parent's allowance payable in respect of a widow or widower and orphan's (non-contributory) pension, on the 29th day of July, 1994.

5 Child benefit (new rates).

5.—(1) Section 194 of the Principal Act is hereby amended by the substitution for subsection (1) of the following subsection:

“(1) Subject to this Act, a person who is qualified for child benefit shall, so long as he remains so qualified, be paid out of moneys provided by the Oireachtas a monthly benefit of the amount set out in column (1) of Part III of the Fourth Schedule in respect of each of the first 2 qualified children and, in addition, the amount set out in column (2) of that Part in respect of each qualified child (if any) in excess of 2.”.

(2) The Fourth Schedule to the Principal Act is hereby amended by the substitution for Part III of the following Part:

“PART III

AMOUNTS OF CHILD BENEFIT

Amount for each of first 2 children	Amount for each child in excess of 2
(1)	(2)
£20.00	£25.00

”.

(3) This section shall come into operation on the 1st day of September, 1994.

6 Family income supplement (new weekly rates).

6.—(1) The Principal Act is hereby amended by the substitution for section 198 of the following section:

“Entitlement to supplement.

198.—Subject to this Act, an allowance (in this Act referred to as ‘family income supplement’) shall be payable out of moneys provided by the Oireachtas in respect of a family where the weekly family income is less than—

(a) in the case of a family which includes only 1 child, £185,

(b) in the case of a family which includes 2 children, £205,

(c) in the case of a family which includes 3 children, £225,

(d) in the case of a family which includes 4 children, £245,

(e) in the case of a family which includes 5 children, £270,

(f) in the case of a family which includes 6 children, £290,

(g) in the case of a family which includes 7 children, £307, or

(h) in the case of a family which includes 8 or more children, £324.”.

(2) This section shall come into operation on the 28th day of July, 1994.

PART III Social Insurance Contributions

7 Employment contributions (new rates of contributions and increases in earnings ceilings).

7.—(1) Section 10 of the Principal Act is hereby amended by the substitution for subsection (1) of the following subsection:

“(1) (a) Employment contributions shall be paid by employed contributors and their employers in accordance with this section.

(b) Subject to paragraph (c) and to regulations under section 11, where in any contribution year a payment is made to or for the benefit of an employed contributor in respect of reckonable earnings of that employed contributor, there shall be payable a contribution by the employed contributor at the rate of 5.5 per cent. of the amount of the reckonable earnings to which such payment relates.

(c) Where in a particular contribution year an employed contributor's reckonable earnings have amounted to the sum of £20,900 and the contributions payable under paragraph (b) have been paid in respect of those reckonable earnings, no further such contribution shall be payable in respect of any reckonable earnings of that employed contributor by the employed contributor in that contribution year.

(d) Subject to paragraphs (e) and (f) and to regulations under section 11, where in any contribution week a payment is made to or for the benefit of an employed contributor in respect of reckonable earnings of that employed contributor, there shall be payable a contribution by the employed contributor's employer—

(i) at the rate of 9 per cent. of the amount of the reckonable earnings in that week to which such payment relates where those reckonable earnings do not exceed £173, (or the equivalent thereof in the case of an employed contributor remunerated otherwise than on a weekly basis), and

(ii) at the rate of 12.2 per cent. of the amount of the reckonable earnings in that week to which such payment relates where those reckonable earnings exceed £173, (or the equivalent thereof in the case of an employed contributor remunerated otherwise than on a weekly basis).

(e) Where in a particular contribution year an employed contributor's reckonable earnings have amounted to the sum of £25,800 and the contributions payable under paragraph (d) have been paid in respect of those reckonable earnings, no further such contribution shall be payable in respect of any reckonable earnings of that employed contributor by his employer in that contribution year.

(f) Where in a particular contribution year an employed contributor is employed by two or more employers concurrently (as defined in regulations under section 13), the provisions of paragraph (e) shall, in relation to contributions mentioned in paragraph (d), apply to the reckonable earnings from each of the employments separately.”.

(2) Each provision of the Principal Act mentioned in column (1) of Schedule C to this Act is hereby amended in the manner specified in column (2) of that Schedule opposite the mention of that provision in column (1).

(3) This section shall come into operation on the 6th day of April, 1994.

8 Self-employment contributions (increase in earnings ceiling).

8.—(1) Section 18 (1) of the Principal Act is hereby amended by the substitution in paragraph (d) of “£20,900” for “£20,000”.

(2) This section shall come into operation on the 6th day of April, 1994.

9 Voluntary contributions by former self-employed contributors.

9.—(1) Section 23 of the Principal Act is hereby amended by the substitution in subsection (1) of “£250” for “£234”.

(2) This section shall come into operation on the 6th day of April, 1994.

10 Exemption from payment of contributions.

10.—Section 10 of the Principal Act is hereby amended by the insertion after subsection (8) of the following subsection:

“(9) An employer who, during the period commencing on the 6th day of April, 1994, and ending on the 5th day of April, 1995, employs additional employees under and by virtue of the scheme administered by the Department of Social Welfare known as the Employers' Pay-Related Social Insurance Exemption Scheme, shall not, during the period commencing on the 6th day of April, 1994, and ending on the 5th day of April, 1996, be liable to pay the contribution specified in section 10 (1) (d) in respect of additional employees who constitute a net increase in the employer's workforce under the scheme above that applying on the 21st day of February, 1994.”.

PART IV Survivor's Pension

11 Survivor's pension.

11.—The Principal Act is hereby amended by the substitution for Chapter 16 of Part II of the following Chapter:

“CHAPTER 16

Interpretation.

100.—In this Chapter—

‘relevant time’ means—

(a) if the contribution conditions are being satisfied on the survivor's insurance record—

(i) the date of the spouse's death, or

(ii) if the survivor attained pensionable age before the date of the spouse's death, the date on which he attained that age,

or

(b) if the contribution conditions are being satisfied on the deceased spouse's insurance record—

(i) the date on which the spouse attained pensionable age, or

(ii) if the spouse died before attaining pensionable age, the date of his death;

‘spouse’, in relation to a survivor who has been married more than once, refers only to his last spouse;

‘survivor’ means a widow or a widower;

‘yearly average’ means the average per contribution year of contribution weeks in respect of which the survivor or deceased spouse (as the case may be) has qualifying contributions, voluntary contributions or credited contributions in the appropriate period specified in section 102(1) (b).

Entitlement to pension.

101.—(1) Subject to this Act, a survivor shall be entitled to survivor's pension—

(a) if the contribution conditions set out in section 102 are satisfied on either the insurance record of the survivor or that of his deceased spouse,

(b) if his spouse was entitled to an old age (contributory) pension or a retirement pension at an increased weekly rate by virtue of section 87 (1) or section 91 (1) in respect of a period ending on his death, or

(c) if his spouse would have been entitled to an old age (contributory) pension or a retirement pension at an increased weekly rate by virtue of section 87 (1) or section 91 (1), but for the receipt by that survivor of an old age (non-contributory) pension, a blind pension or a carer's allowance in his own right, in respect of a period ending on his death.

(2) A survivor's pension shall not be payable to a survivor for any period after his remarriage.

(3) A survivor shall be disqualified for receiving a survivor's pension if and so long as he and any person are cohabiting as husband and wife.

(4) A woman who becomes a widow while she is in receipt of or entitled to deserted wife's benefit shall, on becoming a widow, be entitled to a survivor's pension at the same rate as that of the deserted wife's benefit payable to her, whether or not the relevant contribution conditions for entitlement to such pension are satisfied in her case.

Conditions for receipt.

102.—(1) The contribution conditions for survivor's pension are—

(a) that the survivor has qualifying contributions in respect of not less than 156 contribution weeks in the period beginning with his entry into insurance and ending immediately before the relevant time, and

(b) that, if at the relevant time, 4 years or longer has elapsed since the survivor's entry into insurance—

(i) the yearly average for the 3 contribution years, or (if warranted by his insurance record) 5 contribution years, ending with the end of the last complete contribution year before the relevant time is not less than 39, or

(ii) the yearly average in respect of the period commencing at the beginning of the contribution year in which his entry into insurance occurred and ending at the end of the last complete contribution year before the relevant time is not less than 48,

but, if those conditions are not satisfied on the survivor's insurance record, they may be satisfied on his deceased spouse's insurance record (the survivor's insurance record being disregarded).

(2) Regulations may provide for modifications of the meaning of yearly average contained in section 100 or of the contribution conditions set out in this section.

(3) Subject to subsection (4), regulations may provide for entitling to survivor's pension a person who would be entitled thereto but for the fact that the contribution condition set out in subsection (1) (b) is not satisfied.

(4) Regulations for the purposes of subsection (3) shall provide that survivor's pension payable by virtue thereof shall be payable at a rate less than that specified in the Second Schedule, and the rates specified by the regulations may vary with the extent to which the contribution condition set out in subsection (1) (b) is satisfied, but any increase of pension payable under section 104 (1) shall be the same as if that condition had been fully satisfied.

(5) Subject to subsection (6), regulations may provide for entitling to survivor's pension a person who would be entitled thereto but for the fact that the contribution condition set out in subsection (1) (b) is not satisfied by reference to the insurance record of a person where that person, having earlier ceased to be an employed contributor became an employed contributor as a consequence of the coming into operation of section 12 of the Social Welfare Act, 1973.

(6) Regulations for the purposes of subsection (5) shall provide that survivor's pension payable by virtue thereof shall be payable at a rate less than that specified in the Second Schedule, and the rates specified by the regulations may vary with the extent to which the contribution condition set out in subsection (1) (b) is satisfied.

(7) Where a person becomes an employed contributor by virtue of paragraph (b) of section 9 (1) and would not, apart from that paragraph, be an employed contributor, his entry into insurance by virtue of that paragraph shall be deemed not to be an entry into insurance for the purposes of subsection (1) and for those purposes his entry into insurance shall be deemed to occur when he first becomes an employed contributor by virtue of paragraph (a) of section 9 (1).

(8) In the case of a person who became a self-employed contributor on the 6th day of April, 1988, and who at any time prior to that date was an employed contributor, the date on which the person first entered into insurance or the 6th day of April, 1988, whichever is more favourable, shall be regarded as the date of entry into insurance for the purposes of subsection (1) (b).

Rate of pension.

103.—Subject to this Act, the weekly rate of survivor's pension shall be as set out in column (2) of Part I of the Second Schedule.

Increases (including increases for child dependants).

104.—(1) The weekly rate of survivor's pension shall be increased by the amount set out in column (4) of Part I of the Second Schedule in respect of each qualified child who normally resides with the beneficiary.

(2) The weekly rate of survivor's pension shall be increased by the amount set out in column (6) of Part I of the Second Schedule where the beneficiary has attained pensionable age and is living alone.

(3) The weekly rate of survivor's pension shall be increased by the amount set out in column (7) of Part I of the Second Schedule where the beneficiary has attained the age of 80 years.

Disregard of self-employment contributions in certain cases.

105.—(1) In the case of any claim for survivor's pension, where the insurance record of a person, who, having been a self-employed contributor, is being used to establish entitlement to survivor's pension, the contribution conditions contained in section 102 shall not be regarded as having been satisfied unless all self-employment contributions payable by him in accordance with section 18 have been paid.

(2) Notwithstanding subsection (1), the Minister may, if he is satisfied that in all the circumstances of the case it would be appropriate to do so, direct that subsection (1) shall not be applied in that case.

Certain claims.

105A.—(1) (a) Entitlement to survivor's pension which is due to be determined by reference to the insurance record of a person who attained the age of 69 years before the 5th day of January, 1976, may be determined under the provisions of the Acts relating to social welfare in operation prior to the 1st day of July, 1974, if this would be to the advantage of the widow.

(b) A widow who, under the provisions of the Acts relating to social welfare in operation prior to the 1st day of July, 1974, has been awarded a survivor's pension on the basis of her own or her spouse's insurance record at the date on which she or he attained the then pensionable age shall on and after the 1st day of July, 1974, have a right to such pension at the rate for the time being payable by reference to a yearly average equal to the yearly average calculated in her case under those provisions.

(2) (a) Entitlement to survivor's pension which is due to be determined by reference to the insurance record of a person who attained the age of 68 years before the 3rd day of January, 1977, may be determined under the provisions of the Acts relating to social welfare in operation prior to the 1st day of April, 1975, if this would be to the advantage of the widow.

(b) A widow who, under the provisions of the Acts relating to social welfare in operation prior to the 1st day of April, 1975, has been awarded a survivor's pension on the basis of her own or her spouse's insurance record at the date on which she or he attained the then pensionable age shall on and after the 1st day of April, 1975, have a right to such pension at the rate for the time being payable by reference to a yearly average equal to the yearly average calculated in her case under those provisions.

(3) (a) Entitlement to survivor's pension which is due to be determined by reference to the insurance record of a person who attained the age of 67 years before the 1st day of January, 1979, may be determined under the provisions of the Acts relating to social welfare in operation prior to the 1st day of October, 1977, if this would be to the advantage of the widow.