Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The House may also wish to note that during the crisis, class K contributions also were introduced for employed persons and certain occupational pensioners under the age of 66. These contributors also became liable for an additional class K liability without gaining additional entitlements based on the payment of that additional charge. While these contributions were already covered for all or certain benefits, any removal of class K liability for officeholders may have impacted on them also.

With regard to councillors, the Bill provides for councillors to be moved to class S, which is the self-employed class. This affects councillors aged 66 and older. They will not have to pay PRSI at all if aged 66 or older, bringing them into line with employees and self-employed people. It also means that from January onwards, their contributions will count towards their PRSI record for the State contributory pension and other benefits.

I want to clarify the position for officeholders and other contributors who wish to make voluntary contributions upon the extension of the deadline for application, which I announced last week on foot of the amendment tabled by Senator Higgins. The deadline for the application will be extended to five years from the beginning of January 2017. Anyone who last paid contributions as an employee or self-employed worker in 2012 may apply to become a voluntary contributor in respect of all the intervening years, provided they satisfy the necessary qualifying criteria. It is not that the local authority members will get their class K contributions turned into class S contributions. I do not believe we could do that for them and not for others also. It means, however, that, that as with everyone else, they would, if they had been paying PRSI in some form up to 2012, be able to make voluntary contributions in respect of that, provided they satisfy the necessary criteria. I understand the argument in favour of a refund but this measure was brought in as a recession measure, just like the FEMPI pay cuts and welfare cuts imposed on many people. There would be something rather anomalous if we paid a refund to a group of politicians and did not do the same for everyone else who took a pay cut in different ways during the period in question.