Tom Hayes (Tipperary South, Fine Gael)
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Question 303: To ask the Minister for Social and Family Affairs the position with effect from the 1 January 2004 that PRSI and tax relief apply to all pension contributions as raised by a person (details supplied). [8033/06]

Séamus Brennan (Dublin South, Fianna Fail)
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In regard to self-employed contributors who are outside the PAYE system, there is no provision for payments made towards future personal pension provision to be exempted from liability for PRSI contributions. However, self-employed contributors on the PAYE schedule E system may avail of PRSI refunds on these payments. The relevant provisions are contained in section 38 of the Social Welfare (Consolidation) Act 2005 and the Social Welfare (Consolidated Contributions and Insurability (Amendment) (No. 1) (Refunds) Regulations, SI 698 of 2003.

There is no provision for refunds to be made to self-employed contributors who are liable to income tax on schedule D and no proposals to provide otherwise. To narrow the base for social insurance by introducing such a provision for all other self-employed contributors 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 generality of self-employed workers are eligible.