Mr. Ian Martin:

No. A person who has run a business for many years will have paid a great deal of PRSI. In regard to the contribution being voluntary, I recall that previously when a person's salary exceeded £1,600 he or she could opt-in to paying additional tax or PRSI - I am not sure which it was - for which he or she would get a slightly higher old age pension. On the advice of my father and my employer at the time, I voluntarily paid that extra money. At the time I was working for a large multinational company. Everybody with whom I was working paid the additional money in the hope of getting higher pensions in the future.

In regard to the 0.25% contribution rate, to what will payment of that contribution entitle people? In previous discussions I had with the Department on this issue, it was stated that contributions of 3% or 4% would be required in respect of one benefit. What will the person who pays that 0.25% contribution get for doing so?