Oireachtas Joint and Select Committees

Thursday, 20 September 2012

Joint Oireachtas Committee on Education and Social Protection

Actuarial Review of the Social Insurance Fund: Discussion

10:20 am

Photo of Marie MoloneyMarie Moloney (Labour) | Oireachtas source

I have not had time to read the report because I received it by e-mail yesterday morning and it contains 177 pages. I would like to take the time to study it in detail. I will speak from a more practical point of view. Some people were against the changes made to pensions this year and voiced their opposition to them, but I thought it was good because I found that someone who worked for ten years and made PRSI and tax contributions but did not work for the following 40 years and drew unemployment payments and got a credit stamp was entitled to exactly the same pension as somebody who worked for 47 years and contributed regularly. I agree with the changes made and I believe that if people who do not pay as much do not get as much back it will ease the burden a little.

I have dealt with many self-employed people who find themselves in dire circumstances. They tell me they would have no problem paying an A rate of PRSI so they could avail of the benefits if they needed them. Has bringing the self-employed into the contributions net at the same rate as PAYE workers been considered? This would mean the benefits would be available to them also when the time came. From what was stated, it seems a subvention from the Exchequer was the norm for 40 years and it was only during the bubble that the subvention was not needed. Obviously we need to revert to the subvention. We cannot apologise for this because it always was the norm.

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