The Government has recently corrected an anomaly in the contributory old-age pension that had disadvantaged many self-employed people. Despite paying the compulsory amounts towards their contributory old-age pension, some self-employed were narrowly disqualified from receiving the pension under the existing rules which require pension payments over a 10-year period.

Last week, a special old-age contributory pension for the self-employed was introduced by the Minister for Social, Community and Family Affairs, Mr Ahern, in line with election promises. "The Government has decided to fulfil that commitment by introducing a special pension for those who have paid at least five years contributions since April 1988."

Before this new scheme, the self-employed applied for a regular contributory old-age pension which required a minimum average number of contributions annually which were paid or credited over a specified number of years, usually a 10-year period. Partial pensions were granted for those with a minimum of 10 and a maximum of 47 annual contributions and full pensions were provided for those with 48 or more a year.

Certain self-employed people who did not qualify for a pension under the existing rules may now benefit from the flexibility of the new scheme.

Payments do not have to be consecutive and may be spread out over the 10-year period, said a Department spokeswoman. They may also combine self-employed and employed contributions but from April of 1988 to 1989 qualifying individuals must have been self-employed or Class "S".

To qualify, a person must also have been born on or before April 6th, 1932, started paying PRSI contributions as a self-employed person on or after April 6th, 1988, and made a minimum of 260 PRSI contributions paid on a compulsory basis since April 6th, 1988.

In the past, self-employed individuals who applied for, but were refused, a pension under the existing rules were refunded. In order to qualify for the new scheme they must now pay back this amount. When the Department receives this refund, they will begin paying the pension, said the spokeswoman.

The new pension will be paid at half the maximum rate of Old Age Contributory Pension or £41.50 (€52.69) per week from April 9th. This amount will increase to £44.50 on June 4th in line with annual social welfare payment increases.

In certain circumstances, a "qualified adult allowance" is payable in respect of a dependant spouse or partner. For spouses/ partners under age 66, payment of £26.30 begins in April and increases in June to £27.80. Qualifying individuals over age 66 will receive £28.50 in April then £30.00 from June.

A "child dependant allowance" is available at a rate of £7.60 per week for each child under 18, or to age 22 if they're in full-time education.

For example, a couple age 66 or over with two dependant children will receive £85.20 per week, increasing to £89.70 per week from June 1999. In addition, this group of special category pensioners are eligible to claim additional allowances where appropriate, such as a living alone allowance, fuel allowance, free electricity/gas, free television licence and free telephone rental from the department.

According to the Department, "up to 10,000 people (approximately 8,000 pensioners and 2,000 qualified adults) will benefit from this measure at an estimated cost of £18 million a year. The total estimated cost of this measure in the future will be over £170 million". To date, the government has identified up to 1,200 people from its own records who will qualify under the new arrangements.

The new pension is effective from April 9th, 1999, for those applying before April 2000. However, the issuance of payments will begin on October 15th this year and back payment will be made despite the actual payment date.

The Department is encouraging even those unsure if they qualify to apply for the new scheme. Applications will be accepted until April 2000, but it is advisable to apply as soon as possible.

Information on the Special Old Age Contributory Pension for the self-employed may be obtained by contacting the Department's Pension Service Office at 01 704 3351 or 071 69800 x3351 from 10 a.m. to 5 p.m. An information leaflet and applications are also available from the Department. Alternatively, applying for the new pension is possible by filling out an Old Age Contributory Pension Claim form (RP/CPI) which is available from local social welfare offices or post offices.