Social Welfare and Pensions Act 2012

PART 1 Preliminary and General

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

1.— (1) This Act may be cited as the Social Welfare and Pensions Act 2012.

(2) The Social Welfare Acts and Parts 1 and 2shall be read together as one.

(3) The Pensions Acts 1990 to 2011 and Part 3 shall be read together as one and may be cited together as the Pensions Acts 1990 to 2012.

(4) Sections 9, 12, 14, 15, 16, 17 and 19 shall come into operation on such day or days as the Minister for Social Protection 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 Social Welfare Acts

2. Definitions.

2.— In this Part—

“Principal Act” means the Social Welfare Consolidation Act 2005;

“Act of 2011” means the Social Welfare and Pensions Act 2011.

3. Voluntary contributors — amendment.

3.— (1) Section 24 of the Principal Act is amended—

(a) in subsection (1) by substituting “520 contribution weeks” for “260 contribution weeks”, and

(b) by inserting the following subsections after subsection (1):

“(1A) In the case of a person who becomes a voluntary contributor paying contributions under this Chapter before 6 April 2013, subsection (1) shall be read as if ‘260 contribution weeks’ were substituted for ‘520 contribution weeks’.

(1B) In the case of a person who becomes a voluntary contributor paying contributions under this Chapter on or after 6 April 2013 but before 6 April 2014, subsection (1) shall be read as if ‘364 contribution weeks’ were substituted for ‘520 contribution weeks’.

(1C) In the case of a person who becomes a voluntary contributor paying contributions under this Chapter on or after 6 April 2014 but before 6 April 2015, subsection (1) shall be read as if ‘468 contribution weeks’ were substituted for ‘520 contribution weeks’.”.

(2) This section comes into operation on 6 April 2013.

4. One-parent family payment — amendments.

4.— (1) Section 172(1) of the Principal Act is amended—

(a) by inserting the following definition:

“ ‘relevant age’ means—

(a) 16 years where a payment under Chapter 8A of Part 3 is being made in respect of a child, and

(b) in any other case—

(i) 12 years in respect of any claim for one-parent family payment relating to any day during the period beginning on 3 May 2012 and expiring on 2 January 2013,

(ii) 10 years in respect of any claim for one-parent family payment relating to any day during the period beginning on 3 January 2013 and expiring on 1 January 2014, and

(iii) 7 years in respect of any claim for one-parent family payment relating to any day occurring on or after 2 January 2014;”,

and

(b) in the definition of “relevant child” (inserted by section 9 of the Act of 2011), by substituting the following paragraph for paragraph (c):

“(c) has not attained the relevant age;”.

(2) This section comes into operation on 3 May 2012.

5. Entitlement to one-parent family payment — amendments.

5.— (1) The Principal Act is amended by substituting the following section for section 173A (amended by section 9 of the Act of 2011):

“Entitlement to one-parent family payment where youngest child has attained relevant age.

173A.— (1) This section applies to—

(a) a surviving spouse where both spouses of a married couple are, on the relevant date, living together and one of them dies,

(b) a surviving cohabitant where both cohabitants are, on the relevant date, cohabiting and one of them dies, and

(c) a surviving civil partner where both civil partners of a civil partnership are, on the relevant date, living together and one of them dies,

and where the surviving spouse, surviving cohabitant or surviving civil partner is the parent, step-parent, adoptive parent or legal guardian of at least one child who normally resides with that surviving spouse, surviving cohabitant or surviving civil partner and the youngest child has, on the relevant date, attained the relevant age.

(2) Notwithstanding—

(a) that the youngest child has attained the relevant age, and

(b) section 178C,

one-parent family payment shall be payable to a surviving spouse, surviving cohabitant or surviving civil partner to whom this section applies for the shorter of—

(i) the period commencing on the relevant date and ending on the day that is 2 years after that date, or

(ii) the period commencing on the relevant date and ending on the date that the youngest child attains the age of 18 years.”.

(2) The Principal Act is amended by substituting the following section for section 173B (amended by section 9 of the Act of 2011):

“Entitlement to one-parent family payment in certain circumstances.

173B.— (1) This section applies to—

(a) a surviving spouse where both spouses of a married couple are, on the relevant date, living together and one of them dies,

(b) a surviving cohabitant where both cohabitants are, on the relevant date, cohabiting and one of them dies, and

(c) a surviving civil partner where both civil partners are, on the relevant date, living together and one of them dies,

and where the surviving spouse, surviving cohabitant or surviving civil partner is the parent, step-parent, adoptive parent or legal guardian of at least one relevant child who normally resides with that surviving spouse, surviving cohabitant or surviving civil partner and the youngest relevant child is, on the relevant date, within 2 years of attaining the relevant age.

(2) Notwithstanding section 178C, where one-parent family payment is payable to a qualified parent who is a surviving spouse, surviving cohabitant or surviving civil partner to whom this section applies, that payment shall continue to be payable for a period of 2 years commencing on the relevant date and if, during that period, the relevant child attains the relevant age, that payment shall continue to be paid for that period.”.

(3) The Principal Act is amended by substituting the following section for section 176 (amended by section 9 of the Act of 2011):

“Continuation of payment — amendment.

176.— Where one-parent family payment is being paid to a person under this Chapter by virtue of that person’s spouse or civil partner having been committed in custody to a prison or place of detention for not less than 6 months, one-parent family payment shall continue to be paid for 4 weeks after the release of such spouse or civil partner from the prison or place of detention.”.

(4) The Principal Act is amended by inserting the following new sections:

“One-parent family payment — transitional provisions in certain circumstances where child attains age of 14.

178B.— (1) This section applies to a person who—

(a) immediately before 27 April 2011 was in receipt of one-parent family payment, and

(b) would have continued to receive that payment—

(i) immediately after 26 April 2011 but for the fact that the youngest child attained the age of 14 years before 27 April 2011, or

(ii) on or after 27 April 2011 but for the fact that the youngest child has attained the age of 14 years on or after 27 April 2011.

(2) A person to whom this section applies shall, subject to subsection (3), continue to be entitled to the payment referred to in subsection (1) as follows:

(a) during the period commencing on 27 April 2011 and ending on 2 January 2013, until the youngest child attains the age of 18 years;

(b) during the period commencing on 3 January 2013 and ending on 1 January 2014, until the youngest child attains the age of 17 years;

(c) during the period commencing on 2 January 2014 and ending on 31 December 2014, until the youngest child attains the age of 16 years.

(3) For the purposes of this section one-parent family payment shall, subject to subsection (4), continue to be paid to a person to whom this section applies where—

(a) the youngest child has attained the age of 18 years and has not attained the age of 22 years, and

(b) that youngest child is receiving full-time education as may be prescribed.

(4) For the purposes of subsection (3), one-parent family payment shall be paid to a person to whom this section applies until the end of the academic year which commences in 2012 and which applies to such course of full-time education, as may be prescribed, which that youngest child is receiving.

(5) This section shall cease to have effect on 31 December 2014.

One-parent family payment — transitional provisions in certain circumstances where child attains relevant age.

178C.— (1) This section applies to a person who—

(a) becomes entitled to one-parent family payment during the period commencing on 27 April 2011 and ending on 2 May 2012,

(b) immediately before 3 May 2012 is in receipt of that payment, and

(c) would have continued to be entitled to receive that payment—

(i) immediately after 2 May 2012 until the date on which the youngest child attained the age of 14 years, but for the fact that the youngest child attained the age of 12 years before 3 May 2012, or

(ii) on or after 3 May 2012 until the date on which the youngest child attained the age of 14 years, but for the fact that the youngest child has attained the age of 12 years on or after 3 May 2012.

(2) A person to whom this section applies shall continue to be entitled to the payment referred to in subsection (1) as follows:

(a) during the period commencing on 3 May 2012 and ending on 2 January 2013, until the youngest child attains the age of 14 years;

(b) during the period commencing on 3 January 2013 and ending on 1 January 2014, until the youngest child attains the age of 12 years;

(c) during the period commencing on 2 January 2014 and ending on 31 December 2014, until the youngest child attains the age of 10 years.

(3) For the purposes of this section nothing in subsection (2) shall affect the entitlement of a person to whom this section applies to continue to be entitled to one-parent family payment until the youngest child attains 16 years, where that child is a child in respect of whom a payment under Chapter 8A of Part 3 is in payment.

(4) This section shall cease to have effect on 31 December 2014.

One-parent family payment — continuation following certain disqualifications.

178D.— (1) Where a person has—

(a) been in receipt of one-parent family payment for a period of 52 consecutive weeks and is disqualified for receipt of that payment by virtue of—

(i) having gross weekly earnings in excess of the amount specified in section 173(3), or

(ii) participation in a scheme administered by the Minister and known as Back to Education Allowance,

and

(b) but for that disqualification the person would be entitled to that one-parent family payment,

the person shall again become entitled to that payment at the expiration of the disqualification subject to, and in accordance with—

(i) section 178B, in the case of a person who first became entitled to one-parent family payment before 27 April 2011, or

(ii) section 178C, in the case of a person who first became entitled to one-parent family payment during the period commencing on 27 April 2011 and ending on 2 May 2012.

(2) This section shall cease to have effect on 31 December 2014.

One-parent family payments — miscellaneous provisions relating to claims made on certain dates.

178E.— (1) Where—

(a) a person made a claim for one-parent family payment before 27 April 2011 and the claim had not been fully determined by that date, and

(b) that person would have been entitled to that payment but for the fact that the youngest child had attained the age of 14 years before 27 April 2011,

the entitlement of that person to that payment shall be determined in accordance with section 178B.

(2) Where—

(a) a person made a claim for one-parent family payment before 3 May 2012 and the claim had not been fully determined by that date, and

(b) that person would have been entitled to that payment but for the fact that the youngest child attained the age of 12 years before 3 May 2012,

the entitlement of that person to that payment shall be determined in accordance with section 178C.”.

(5) Section 178A of the Principal Act is amended by deleting subsections (6), (6A), (7), (8), (9) and (10).

(6) This section comes into operation on 3 May 2012.

6. Schedule 5 — amendments.

6.— Schedule 5 to the Principal Act is amended—

(a) in paragraph 1—

(i) by inserting the following subparagraph after sub-paragraph (2):

“(2A) a vocational education committee (within the meaning of section 7 of the Vocational Education Act 1930);”,

and

(ii) in subparagraph (4) (amended by section 20 of the Act of 2011) by inserting “the Pensions Ombudsman,” after “the Pensions Board,”,

and

(b) in paragraph 2, by deleting “a vocational education committee (within the meaning of section 7 of the Vocational Education Act 1930),”.

7. Disqualification from certain payments while participating in Community Employment.

7.— Section 247B(1) (inserted by section 12 of the Social Welfare Act 2011) of the Principal Act is amended in paragraph (c) by substituting the following subparagraph for subparagraph (i):

“(i) a weekly or monthly payment payable in accordance with section 198,”.

8. Reckonable earnings — amendment.

8.— Section 2(1) of the Principal Act is amended—

(a) by substituting the following definition for the definition of “reckonable earnings” (amended by section 13 of the Act of 2011):

“ ‘reckonable earnings’ means, subject to section 13(2)(da)—

(a) in the case of an employed contributor, not being a special contributor, emoluments derived from insurable employment or insurable (occupational injuries) employment (other than such emoluments that may be prescribed) to which Chapter 4 of Part 42 of the Act of 1997 applies, but without regard to Chapter 1 of Part 44 of that Act, and

(b) in the case of a special contributor—

(i) salaries, wages or other remuneration including non-pecuniary remuneration derived from insurable employment or insurable (occupational injuries) employment to which the Act of 1997 (other than Chapter 4 of Part 42) applies or would apply if the employed contributor in receipt of the remuneration were resident in the State, but without regard to Chapter 1 of Part 44 of that Act, and

(ii) payments to persons attending or engaged in courses or schemes provided or approved by—

(I) An Foras Áiseanna Saothair,

(II) Teagasc, or

(III) the National Tourism Development Authority,

and reckonable earnings shall include—

(A) share-based remuneration realised, acquired or appropriated, as the case may be, on or after 1 January 2011, and

(B) the ‘specified amount’ within the meaning of section 825C of the Act of 1997;”,

and

(b) by substituting the following definition for the definition of “reckonable emoluments” (amended by section 13 of the Act of 2011):

“ ‘reckonable emoluments’, in relation to a self-employed contributor, means emoluments (other than reckonable earnings and any other emoluments that may be prescribed) to which Chapter 4 of Part 42 of the Act of 1997 applies and reckonable emoluments shall include—

(a) share-based remuneration realised, acquired or appropriated, as the case may be, on or after 1 January 2011, and

(b) the ‘specified amount’ within the meaning of section 825C of the Act of 1997;”.

9. Employer not liable to deduct employment contributions in certain circumstances.

9.— Section 13 of the Principal Act is amended by substituting the following subsection for subsection (4A) (inserted by section 13 of the Social Welfare Act 2011):

“(4A) Where a person realises a gain by—

(a) the exercise of a right in accordance with section 128 of the Act of 1997, or

(b) the exercise of a right in accordance with section 519A of the Act of 1997 and, at the time of realising that gain, that person has ceased to be an employee of the employer who granted that right,

subsection (4) shall not apply to—

(i) the employer who granted that right, or

(ii) if that person is employed by another employer at the time the gain is realised, that other employer.”.

10. Share-based remuneration — amendments to PRSI liability.

10.— Section 2(1) of the Principal Act is amended in the definition of “share-based remuneration” (inserted by section 13 of the Social Welfare Act 2011)—

(a) in paragraph (d), by substituting “section 510(2) of that Act,” for “section 510(2) of that Act, and”,

(b) in paragraph (e), by substituting “section 519A of that Act, and” for “section 519A of that Act,”, and

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

“(f) in the case of emoluments (within the meaning of section 983 of the Act of 1997) received by an employee or director in the form of shares (including stock) in—

(i) the company in which the employee or director holds his or her office or employment, or

(ii) a company which has control (within the meaning of section 432 of the Act of 1997) of that company,

the amount referred to in section 985A(3) of the Act of 1997,”.

11. Return of contributions — share-based remuneration.

11.— (1) Section 34A(1)(a) (inserted by section 13 of the Social Welfare Act 2011) of the Principal Act is amended—

(a) in subparagraph (i)—

(i) by substituting “pursuant to paragraph (a)(ii) or (b)(ii) of the definition of ‘reckonable earnings’ specified in” for “by virtue of clauses (I) to (VI) of paragraphs (a) and (b) of the definition of ‘reckonable earnings’ contained in”,

(ii) by inserting “(amended by the Social Welfare (Consolidated Contributions and Insurability) (Amendment) Regulations 2010 (S.I. No. 684 of 2010))” after “Article 3”, and

(iii) by deleting “(inserted by Article 4 of the Social Welfare (Consolidated Contributions and Insurability) (Amendment) Regulations 2010 (S.I. No. 684 of 2010))”,

and

(b) in subparagraph (ii) by substituting “that section applies,” for “that section applies, and”.

(2) Section 34A(1) of the Principal Act is amended by substituting the following paragraph for paragraph (b):

“(b) paid in accordance with section 13(2)(d)—