David Stanton (Cork East, Fine Gael)
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Question 437: To ask the Minister for Social and Family Affairs the amount awarded in class D PRSI contributions each year from 2000 to 2005; the benefits and entitlements available to people contributing to class D; and if he will make a statement on the matter. [6690/06]

Séamus Brennan (Dublin South, Fianna Fail)
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PRSI class D contributors provide social insurance coverage for permanent and pensionable employees in the public services, excluding those recruited after 6 April 1995, registered doctors and dentists employed in the Civil Service, gardaí or commissioned Army officers and members of the Army nursing service. Public servants recruited on or after 6 April 1995 are liable to pay PRSI contributions at the ordinary class A rate. As a consequence the number of contributors at PRSI class D is falling. The table shows the numbers of contributors in each of the contribution years from 2000 to 2004 and the combined total of social insurance and heath contributions paid in respect of those employments. It is estimated that health contributions accounts for approximately 37% of these totals. Accordingly, this portion would not serve as income to the social insurance fund. In 2000 there were 116,817 contributors paying at this contribution class, whereas by 2004 this had fallen to 98,902, a decrease of almost 16%. The amount paid shows that over the same period the amount of contributions paid has risen by 16%, which reflects the general increases in earnings over the period. Figures in respect of 2005 are not yet available.

The system of PRSI contributions, which includes payment of the health levy where appropriate, operates using a range of tiered contribution rates which vary for employer and employees corresponding to weekly non-cumulative thresholds and a weekly non-cumulative PRSI allowance, subject to an annual cumulative ceiling on employee contributions. The tiered PRSI contributions and allowances link the percentage of PRSI payable to the level of reckonable earnings in a given contribution week to ensure that the system is largely progressive up to the value of the annual ceiling. The contributions payable by an employee determine the range of benefits and pensions towards which contributors can build up entitlement. Employments liable for class D contributions are at a lower modified insurance rate of 3.25%, whereas the PRSI class A contributions, which is generally payable in the private sector is 14.75%, excluding the health contribution. The reduced rate of contribution reflects the fact that employments covered at the modified rate are in respect of permanent and pensionable positions. Employees are covered by their employer for occupational pensions and sick pay during illness, and social insurance protection for these payments is generally not required. Subject to having the required number of PRSI contributions, employees who pay class D contributions are entitled to widow's and widower's contributory pension; orphan's contributory allowance; occupational injuries benefits; bereavement grant and carer's benefit.