Written answers

Thursday, 1 March 2007

Department of Social and Family Affairs

Social Welfare Code

5:00 pm

Photo of Jim O'KeeffeJim O'Keeffe (Cork South West, Fine Gael)
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Question 41: To ask the Minister for Social and Family Affairs the benefits PRSI class D contributors are entitled to when they reach retirement age; and if he will make a statement on the matter. [7995/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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PRSI Class D provides social insurance coverage for permanent and pensionable employees in the public service, other than those who were recruited after 6 April, 1995, doctors and dentists employed in the civil service, Gardai, 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 contribution. As a consequence, the numbers of contributors paying at the modified PRSI Class D rate is falling.

Employments which are insurable at PRSI class D are classified as modified employments. The rate of PRSI payable is 2.35% by the employer with a further 0.9% payable by the employee. The health contribution of 2% may also be payable. The contributions payable by an employee at the modified rate of contribution determines the range of benefits and pensions towards which these contributors can build up entitlement. Subject to having the required number of PRSI contributions, employees who pay Class D contributions can accrue entitlement to the following payments:

a. the widow's/widower's (contributory) pension;

b. the orphan's (contributory) allowance;

c. occupational injuries benefits;

d. bereavement grant, and

e. carer's benefit.

Contributors insured at PRSI class D are not eligible for social insurance based pensions on retirement. This reflects the reduced rate of social insurance contribution which workers have been paying and the fact that the employments are covered under civil service regulations for occupational pensions. There are no plans at present for a further review of the PRSI position of public and civil servants.

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