Seanad debates

Tuesday, 13 December 2016

Social Welfare Bill 2016: Report and Final Stages

 

2:30 pm

Photo of Denis LandyDenis Landy (Labour) | Oireachtas source

I thank the Minister for returning to the House for Report Stage. Unfortunately, I was unable to be here last week, but I was watching the debate online. On the issue of class K, the Minister specifically gave a commitment that councillors who had exceeded the age of 66 would no longer pay class K. He also made the comment that councillors who have been paying this since it was introduced through the financial emergency measures in the public interest, FEMPI, legislation would be given the option of buying back their stamps - in other words, the years they lost.

If a councillor has paid since 2010, which will be seven years ago by the time the Minister introduces the ministerial order to change this, will the Minister allow a retrospective measure with regard to the 4% already paid? As was pointed out by Senator Craughwell last week, any of us can buy a stamp for €660 per annum. The Minister will allow councillors to do this, but they have already paid 4% per annum for no benefit. If we look at the figures, they should be allowed to get back the stamps they have lost, or should have had for those years, at no cost because they have already paid approximately €600 per annum towards class K from their miserly salaries of €16,500. If the Minister is to be fair about it, there should be a retrospective measure with regard to the date councillors began to pay this under FEMPI. Will the Minister comment on this?

It might sound a little confusing, but it is very clear. We have taken 4% from councillors, which equates to the same amount as if they were paying for a full stamp since the introduction of FEMPI. If we allow them to buy it back retrospectively surely the Minister will have to accept they have already bought it and give them credit in stamps back to the first day of FEMPI. This is a very important issue. Many councillors throughout the country are in their mid-50s. They have committed to full-time public service. If they do not get these stamps back, they will not qualify for a full State pension when they reach 66 years of age. I have been contacted by several people as, I am sure, have other Senators. They cannot make back the stamps any way other than this. The Minister cannot charge them for something for which they have already paid. Will the Minister comment on this? It is very important.

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