Michael Ring (Mayo, Fine Gael)
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Question 405: To ask the Minister for Social and Family Affairs if he will review the PRSI rate being deducted from retired Civil Service personnel; if this deduction is grossly unfair in view of the fact that those people have no entitlements to health care or State pension and so on; and if he will make a statement on the matter. [17059/07]

Michael Ring (Mayo, Fine Gael)
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Question 406: To ask the Minister for Social and Family Affairs the reason people such as nurses who worked within the Civil Service and paid a modified rate of PRSI during their careers which did not entitle them to a State contributory pension on retirement have to pay PRSI from their health board or Health Service Executive retirement pension; the purpose of this PRSI deduction from their pension payments; the benefits it entitles them to; and if he will make a statement on the matter. [17060/07]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 405 and 406 together.

Permanent and pensionable employees in the public service — other than those who were recruited after 6 April, 1995, registered doctors and dentists employed in the Civil Service, Gardaí, commissioned army officers and members of the Army Nursing Service — are liable to pay social insurance contributions at the modified PRSI Class D rate during their working lives. While these contributors are not eligible for social insurance-based pensions on retirement, they can accrue entitlement to the widow's/widower's (contributory) pension, the guardian's payment (contributory), occupational injuries benefits, the bereavement grant and carer's benefit. This reflects the reduced 0.90% PRSI rate that they paid as permanent and pensionable workers and the fact that their former employers cover them directly under Civil Service regulations for occupational pensions.

Holders of occupational pensions are required, under statutory provisions set down by the Department of Health and Children, to pay a health contribution of 2.00% on all income exceeding €480 per week and for an additional contribution of 0.50% on all income exceeding €1,925 per week. The Department of Social and Family Affairs collects this contribution on behalf of the Department of Health and Children and nominally denotes the contribution as PRSI Class K.

Health contributions are channelled into the funding of national health services by the Department of Health and Children and are consistent with the solidarity principle of the PRSI system. Entitlement to health services in Ireland is not related to these contributions but is primarily based on residency and means.