Mary Hanafin (Dún Laoghaire, Fianna Fail)

Since 1994 people have been able to get refunds without any time limit, so it is not as if people have not had an opportunity to do so up to now. It is now appropriate to bring the process in line with the tax system for the reasons I have outlined. It does not affect some of the people Senators were talking about, such as people who underpaid or were trying to build up their entitlements. That has nothing to do with the issue at all. People who have not yet retired may have discovered they do not have the right entitlements and depending on the scheme, they may be able to purchase them, and that process is unaffected.

This only concerns people who have overpaid PRSI and are trying to claim it back. It is about getting it back for the four years. It is hard to tell why there are so many more claims now, although there are much more insured people because more people are working. The contribution to the social insurance fund has grown as a result. I am not sure of the extent of it but once a person qualifies in some schemes, a lower rate of PRSI is paid. For example, if a person qualifies for widow's pension, it is deemed that the person is getting as much social welfare benefit as is likely so a lower rate of PRSI is paid. In that case, a person is entitled to claim some of it back. There are similar schemes where money can be refunded.

With regard to whether the process is legal, the date has been challenged a number of times, even this year, with the Revenue Commissioners and it has stood up. It has been proven to be legal.