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

Ms Mary Kennedy:

The report examined the level of contribution that would be required to fund the State pension. The class A is a 14.75% contribution which comprises 4% from the employee and 10.75% from the employer. At present a self-employed person receives the exact same pension on the basis of a 4% contribution. The report found the level of contribution required to fund the State contributory pension is 15% for employees and self-employed people. If one wants to add additional benefits for the self-employed, the report has found the level of contribution required would be 16% to provide jobseeker's benefit and a pension and 17% to add invalidity pension to this.

As I stated, the purpose of the review is to examine various issues and provide information to the Minister and the Government to enable them consider various matters. Senator Moloney raised the issue of the self-employed and this is the information provided to us by the report on extending additional benefits to the self-employed and what the appropriate contribution would be to do this.

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