Social Welfare Consolidation Act 2005

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Voluntary contributions by former employed contributors.

[1993 s22(1)]

25.—(1) (a) Subject to paragraph (c), a contribution (in this Act referred to as a “voluntary contribution”), in the case of a person who becomes a voluntary contributor by virtue of section 24 (1)(a) and who is under pensionable age, shall be payable in each contribution year, at the time or times and in the manner that the Minister shall prescribe, at a percentage rate, as set out in paragraph (b), of the amount of the reckonable income (if any) of the contributor in the preceding contribution year or in an amount (“minimum annual amount”), as set out in paragraph (b), whichever is the greater.

(b)  (i) In the case of a voluntary contributor who, immediately before ceasing to be an employed contributor, was employed in employment in respect of which the employment contributions payable are not reckonable for the purposes of old age (contributory) pension, the percentage rate shall be 2.6 per cent and the minimum annual amount shall be €126.

(ii) In the case of a voluntary contributor who, immediately before ceasing to be an employed contributor, was employed in employment in respect of which the employment contributions payable are reckonable for the purposes of old age (contributory) pension, the percentage rate shall be 6.6 per cent and the minimum annual amount shall be €317.

(iii) In the case of a person to whom subsection (2) applies and who, by virtue of compliance with that subsection, continues to be a voluntary contributor, the percentage rate shall be 4 per cent and the minimum annual amount shall be €190.

(c) A contribution under paragraph (a) shall not be payable in respect of reckonable income in any contribution year which exceeds the sum specified in section 13 (2)(c).

(d) “Reckonable income” for the purposes of this subsection means, subject to regulations, income derived from any employment, including any trade, business, profession, office or vocation.

(2) In the case of a person who, on 31 March 1974, was a voluntary contributor entitled to pay voluntary contributions and who became an employed contributor in respect of whom special rate contributions were payable under section 17(1) of the Social Welfare Act 1975 , that person shall, notwithstanding section 24 (3), continue to be entitled to be a voluntary contributor on applying to the Minister in writing for that entitlement.

(3) Voluntary contributions paid under subsection (2) by a person to whom that subsection applies shall be disregarded in determining whether the contribution conditions for any benefit other than old age (contributory) pension, retirement pension or bereavement grant are satisfied.

(4) Notwithstanding any other provision of this Act, but subject to subsection (5), a voluntary contributor shall not be entitled to disability benefit, unemployment benefit, maternity benefit, invalidity pension or treatment benefit and, where any voluntary contributions paid by the voluntary contributor are at the percentage rate for the time being payable under subsection (1)(b)(i), they shall be disregarded in determining whether the contribution conditions for old age (contributory) pension, retirement pension or bereavement grant are satisfied.

(5) Notwithstanding subsection (4), any benefit mentioned in that subsection may be granted to a voluntary contributor in the circumstances and subject to the limitations that may be prescribed.

(6) A voluntary contribution paid under subsection (1)(a) shall be regarded, where the contribution relates to a full contribution year, as having been paid for each contribution week in that contribution year or, where the contribution relates to a shorter period, as having been paid for each contribution week in that period.