Social Welfare Law Reform and Pensions Act 2006

PART 1 Short Title, Construction, Collective Citation and Commencement

1. Short title, construction, collective citation and commencement.

1.— (1) This Act may be cited as the Social Welfare Law Reform and Pensions Act 2006.

(2) The Social Welfare Acts and sections 1 to 37 of this Act shall be read together as one.

(3) Sections 38 to 44 of this Act and the Pensions Acts 1990 to 2005 may be cited together as the Pensions Acts 1990 to 2006.

(4) Sections 4, 5, 6, 9 to 14, 16 to 27, 31 and 33 and Part 3 of this Act shall come into operation on such day or days as the Minister may appoint by order or orders either generally or with reference to any particular purpose or provision, and different days may be so appointed for different purposes or different provisions.

PART 2 Amendments to the Social Welfare Acts

2. Definition (Part 2).

2.— In this Part “Principal Act” means the Social Welfare Consolidation Act 2005.

3. Child benefit — new rates.

3.— (1) Schedule 4 to the Principal Act is amended by substituting the following for Part 6:

“PART 6

Amounts of Child Benefit

”.

(2) This section comes into operation on 1 April 2006.

4. Renaming of certain social welfare schemes.

4.— (1) Each provision of the Principal Act and each instrument mentioned in column (2) of Schedule 1 to this Act is amended in the manner specified in column (3) of that Schedule opposite the mention of that provision or instrument in column (2).

(2) Every reference in any Act or in any instrument made under any Act to disability benefit shall be read as a reference to illness benefit.

(3) Every reference in any Act or in any instrument made under any Act to old age (contributory) pension shall be read as a reference to State pension (contributory).

(4) Every reference in any Act or in any instrument made under any Act to orphan’s (contributory) allowance shall be read as a reference to guardian’s payment (contributory).

(5) Every reference in any Act or in any instrument made under any Act to orphan’s (non-contributory) pension shall be read as a reference to guardian’s payment (non-contributory).

(6) Every reference in any Act or in any instrument made under any Act to retirement pension shall be read as a reference to State pension (transition).

(7) Every reference in any Act or in any instrument made under any Act to unemployment benefit shall be read as a reference to jobseeker’s benefit.

(8) Every reference in any Act or in any instrument made under any Act to unemployment assistance shall be read as a reference to jobseeker’s allowance.

(9) Every reference in any Act or in any instrument made under any Act to unemployability supplement shall be read as a reference to incapacity supplement.

5. Reckonable income — amendment to definition.

5.— Section 2(1) of the Principal Act is amended in paragraph (a) of the definition of “reckonable income” by substituting “195, 216C,” for “195,”.

6. Rates of self-employed contributions and related matters.

6.— Section 21(1) of the Principal Act is amended—

(a) in paragraph (a), by substituting “paragraphs (b), (ea)” for “paragraph (b)”,

(b) in paragraph (c), by substituting “paragraphs (ea) and (f)” for “paragraph (f)”, and

(c) by inserting the following after paragraph (e):

“(ea) where in any contribution year a self-employed contributor avails of childcare services relief within the meaning of section 216C of the Taxes Consolidation Act 1997, he or she shall be liable for a contribution of €253 in respect of that amount for which childcare services relief is claimed under that section;”.

7. Carer’s benefit — extension of duration of payment.

7.— (1) Section 103 of the Principal Act is amended by substituting “104 weeks” for “65 weeks”.

(2) This section applies to a person who was in receipt of carer’s benefit on or after 7 December 2005.

8. Decision by deciding officer — homemakers.

8.— Section 108 of the Principal Act is amended by inserting the following after subsection (2):

“(2A) A deciding officer may, for the purpose of determining whether a person satisfies the conditions in section 109, decide the question as to whether a person is a homemaker, in accordance with subsection (2).”.

9. Old age (contributory) pension — improvement.

9.— Section 108 of the Principal Act is amended by inserting the following after subsection (8):

“(9) The amount payable by way of old age (contributory) pension for any day on or after which a person has attained pensionable age but before the day on which the person first receives payment of old age (contributory) pension, shall be one-seventh of the appropriate weekly rate, subject to the total amount being paid at any time by virtue of this subsection being rounded up to the nearest 10 cent where it is a multiple of 5 cent but not also a multiple of 10 cent and being rounded to the nearest 10 cent where it is not a multiple of 5 cent or 10 cent.”.

10. Conditions for receipt of old age (contributory) pension — amendment.

10.— The following paragraph is substituted for paragraph (b) of section 109(17) of the Principal Act:

“(b) where the amount calculated in accordance with paragraph (a) is a multiple of 5 cent but not also a multiple of 10 cent, be rounded up to the nearest 10 cent, and where the amount is not a multiple of 5 cent or 10 cent, be rounded to the nearest 10 cent.”.

11. Old age contributory pension — automatic entitlement for invalidity pension recipients.

11.— The Principal Act is amended—

(a) by inserting the following section after section 113 but in Chapter 15:

“Entitlement for invalidity pension recipients.

113A.— (1) Notwithstanding this Chapter and regulations made under this Chapter old age (contributory) pension shall be payable in accordance with this section in the case of a person who—

(a) has attained pensionable age, and

(b) immediately before attaining pensionable age is in receipt of a payment under Chapter 17 of this Part.

(2) Only one pension shall be payable to or in respect of a person under this Chapter.

(3) Subject to subsection (4), old age (contributory) pension payable under this section shall be payable in accordance with the rate specified in section 111.

(4) Where a person in receipt of invalidity pension under Chapter 17 of this Part attains pensionable age and becomes entitled to a pension under this section and to a pension from another Member State, the weekly rate of pension payable shall be the greater of—

(a) the amount of pension payable, calculated in accordance with Chapter 2 or 3, as the case may be, of Title III of Regulation (EEC) No. 1408/71 ^1 of the Council of the European Communities, or

(b) the rate of invalidity pension otherwise payable in accordance with Chapter 17 of this Part.

(5) The weekly rate of old age (contributory) pension payable under this section shall be increased by—

(a) the amount set out in column (3) at reference 3 in Part 1 of Schedule 2 for any period during which the beneficiary has a qualified adult, subject to the restriction that a beneficiary shall not be entitled for the same period to an increase of pension under this subsection in respect of more than one person,

(b) the amount set out in column (4) at reference 3 in Part 1 of Schedule 2 in respect of each qualified child who normally resides with the beneficiary,

(c) the amount set out in column (6) at reference 3 in Part 1 of Schedule 2 where the beneficiary is living alone,

(d) the amount set out in column (7) at reference 3 in Part 1 of Schedule 2 where the beneficiary has attained the age of 80 years, and

(e) the amount set out in column (8) at reference 3 in Part 1 of Schedule 2 where the beneficiary is ordinarily resident on an island.”,

and

(b) in section 300, by inserting the following subsection after subsection (8):

“(9) In the case of an award made under section 113A, any question which arises in relation to whether old age (contributory) pension is or is not payable, or in relation to who is entitled to receive an old age (contributory) pension, shall be referred to a deciding officer for decision.”.

12. Old age (contributory) pension — automatic entitlement for retirement pension recipients.

12.— The Principal Act is amended—

(a) by inserting the following section after section 113A (inserted by section 11 of this Act) but in Chapter 15:

“Entitlement for retirement pension recipients.

113B.— (1) Notwithstanding this Chapter and regulations made under this Chapter and subject to subsection (2), old age (contributory) pension shall be payable in accordance with this section in the case of a person who—

(a) has attained pensionable age, and

(b) immediately before attaining pensionable age is in receipt of a payment under Chapter 16 of this Part.

(2) Only one pension shall be payable to or in respect of a person under this Chapter.

(3) In the case of a person who is in receipt of retirement pension under Chapter 16 of this Part, the weekly rate of pension payable shall be the greater of—

(a) the rate payable in accordance with this Chapter, or

(b) an amount equal to the rate of retirement pension payable in accordance with Chapter 16 of this Part.”,

and

(b) in section 300, by inserting the following subsection after subsection (9) (inserted by section 11 of this Act):

“(10) In the case of an award made under subsection 113B, any question which arises in relation to whether old age (contributory) pension is or is not payable, or in relation to who is entitled to receive an old age (contributory) pension, shall be referred to a deciding officer for decision.”.

13. Retirement pension — improvement.

13.— Section 114 of the Principal Act is amended by inserting the following subsection after subsection (7):

“(8) The amount payable by way of retirement pension for any day on or after which a person has attained the age of 65 years but before the day on which the person first receives payment of retirement pension, shall be one-seventh of the appropriate weekly rate, subject to the total amount being paid at any time under this subsection being rounded up to the nearest 10 cent where it is a multiple of 5 cent but not also a multiple of 10 cent and being rounded to the nearest 10 cent where it is not a multiple of 5 cent or 10 cent.”.

14. Conditions for receipt of retirement pension — amendment.

14.— The following paragraph is substituted for paragraph (b) of section 115(8) of the Principal Act:

“(b) where the amount calculated in accordance with paragraph (a) is a multiple of 5 cent but not also a multiple of 10 cent, be rounded up to the nearest 10 cent, and where the amount is not a multiple of 5 cent or 10 cent, be rounded to the nearest 10 cent.”.

15. Pre-retirement allowance — payment of allowance.

15.— Section 149 of the Principal Act is amended—

(a) in subsection (5), by substituting “subsections (6) and (8)” for “subsection (6)”, and

(b) by inserting the following after subsection (6):

“(7) Notwithstanding the provisions of this Chapter and subject to subsection (8), pre-retirement allowance shall not be payable to a person in respect of any period of retirement which begins on or after such date as may be prescribed.

(8) Subsection (7) shall not apply where a continuous period of retirement, as read in accordance with subsection (5), began before the date prescribed for the purposes of subsection (7).”.

16. State pension (non-contributory).

16.— (1) The Principal Act is amended—

(a) by substituting the following for section 153:

“Entitlement to pension.

153.— Subject to this Act, a person shall be entitled to State pension (non-contributory) where—

(a) the person has attained pensionable age,

(b) the means of the person as calculated in accordance with the Rules contained in Part 3 of Schedule 3 do not exceed the appropriate highest amount of means at which pension may be paid to that person in accordance with section 156, and

(c) the person is habitually resident in the State at the date of the making of the application for State pension (non-contributory).”;

(b) by deleting sections 154 and 155;

(c) by substituting the following for section 156:

“Rate of pension and increase for qualified child.

156.— (1) Subject to section 159, the rate (in this Chapter referred to as ‘the scheduled rate’) of State pension (non-contributory) shall be the weekly rate set out in column (2) at reference 4 in Part 1 of Schedule 4 increased by the appropriate amount set out in column (4) of that Part in respect of each qualified child who normally resides with the claimant or beneficiary.

(2) (a) The pension shall be payable where the weekly means of the claimant or beneficiary—

(i) do not exceed €20.00, at the scheduled rate, and

(ii) subject to paragraph (b), exceed €20.00, at the scheduled rate reduced by €2.50 for each amount (if any) of €2.50 by which those weekly means exceed €20.00, any fraction of €2.50 in those weekly means being treated for this purpose as €2.50.

(b) Where the rate calculated under paragraph (a)(ii) at which, but for this paragraph, the pension would be payable is less than €2.50, the pension shall not be payable.”;

(d) in section 157, by substituting the following for subsection (2):

“(2) An increase under subsection (1)(a) shall not be payable where the spouse is—

(a) in receipt of any benefit, pension, assistance or allowance under Part 2 or this Part, or

(b) entitled to or in receipt of an allowance in respect of participation in a scheme administered by the Minister for Education and Science and known as the Vocational Training Opportunities Scheme, or

(c) entitled to or in receipt of an allowance in respect of participation in a scheme administered by the Minister and known as—

(i) Back to Education Allowance, or

(ii) Back to Work Allowance, or

(iii) Back to Work Enterprise Allowance, or

(iv) Part-Time Job Incentive.”;

(e) by substituting the following for section 159:

“Rate of pension for persons in receipt of other payments.

159.— In the case of a person who is in receipt of blind pension under Chapter 5 of this Part, widow’s (non-contributory) pension or widower’s (non-contributory) pension under Chapter 6 of this Part, one-parent family payment under Chapter 7 of this Part, a payment referred to in paragraph (b) or (c) of the definition of ‘relevant payment’ in section 178 or farm assist under Chapter 11 of this Part, immediately before becoming entitled to State pension (non-contributory), the weekly rate of pension payable shall be the greater of—

(a) an amount equal to the rate of blind pension which was payable in accordance with sections 161B, 161C and 161D immediately before becoming entitled to State pension (non-contributory) and the rate payable in accordance with sections 156, 157 and 158, or

(b) an amount equal to the rate of widow’s (non-contributory) pension or widower’s (non-contributory) pension which was payable in accordance with section 164 immediately before becoming entitled to State pension (non-contributory) and the rate payable in accordance with sections 156, 157 and 158, or

(c) an amount equal to the rate of one-parent family payment which was payable in accordance with section 174 immediately before becoming entitled to State pension (non-contributory) and the rate payable in accordance with sections 156, 157 and 158, or

(d) an amount equal to the rate of farm assist which was payable in accordance with sections 215 and 216 immediately before becoming entitled to State pension (non-contributory) and the rate payable in accordance with sections 156, 157 and 158.”;

(f) by substituting the following for section 160:

“Disqualifi-cations.

160.— (1) Subject to subsections (2) and (3), a person in receipt of or entitled to widow’s (contributory) pension, widower’s (contributory) pension or old age (contributory) pension or a person in respect of whom an increase of old age (contributory) pension is payable by virtue of section 112(1) shall be disqualified for receipt of State pension (non-contributory).

(2) Notwithstanding subsection (1), a person may be paid State pension (non-contributory) for any period during which the rate of pension payable would be greater than the rate of widow’s (contributory) pension, widower’s (contributory) pension, old age (contributory) pension or the increase thereof, as the case may be, payable.

(3) Notwithstanding subsection (1), in any case where State pension (non-contributory) is so paid, entitlement to widow’s (contributory) pension, widower’s (contributory) pension, old age (contributory) pension or the increase thereof, as the case may be, shall continue but the amount of any such pension or increase payable during any such period shall not be paid to or in respect of the person.”;

and

(g) by substituting the Schedule set out in Schedule 2 to this Act for Schedule 4.

(2) Notwithstanding section 153 (as substituted by subsection (1)(a) of this section) of the Principal Act, a person shall be entitled to a State pension (non-contributory) where—

(a) the person has attained pensionable age, and

(b) on the coming into operation of subsection (1) of this section, the person is in receipt of old age (non-contributory) pension, blind pension, widow’s (non-contributory) pension, widower’s (non-contributory) pension, one-parent family payment or a payment referred to in paragraph (b) or (c) of the definition of “relevant payment” in section 178 of the Principal Act.