Barry Andrews (Dún Laoghaire, Fianna Fail)
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Question 265: To ask the Minister for Social and Family Affairs if he will consider making pension contributions made by self-employed persons deductible or allowable against PRSI levies in view of the fact that employed persons get relief from PRSI on their contributions. [36748/05]

Séamus Brennan (Dublin South, Fianna Fail)
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There is no provision for payments made towards future pension provision to be exempted from liability for PRSI contributions for self-employed contributors who are outside the PAYE system. To narrow the base for social insurance by introducing such a provision would give rise to a significant loss of contribution income for the social insurance fund, while still maintaining responsibility for the cost of benefits and pensions for which the self-employed are eligible.

Self-employed contributors are liable for contributions at 3% of reckonable income and in order to maintain the capacity of the social insurance fund to meet its commitments, the question of a rise in contribution rates for self-employed contributors would have to be addressed. Exempting contributions payable towards private pension provision without an increase in rates would diminish the contributory principle that underpins the social insurance system. There are no plans to alter current rules.