Arthur Morgan (Louth, Sinn Fein)
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Question 409: To ask the Minister for Social and Family Affairs the revenue which will be lost to the to the social insurance fund on an annual basis if PRSI is reduced from 4% to 2% for PAYE workers and from 3% to 2% for the self employed as proposed in the programme for Government. [17197/07]

Martin Cullen (Waterford, Fianna Fail)
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Approximately 76 per cent of workers pay PRSI Class A and Class H at the rate of 4 per cent. A further 11 per cent of workers pay social insurance contributions at the Class S rate. These contributions which are subject to various thresholds, allowances and ceilings, accrue entitlement to a range of benefits and pensions under various social insurance schemes. The current employee PRSI ceiling stands at €48,800 per annum.

It is estimated that a decrease in the employee PRSI rate from 4% to 2% would reduce Social Insurance Fund income by some €720 million in a full year. The abolition of the PRSI ceiling for ordinary employees would yield some €295 million in additional contribution income. A decrease in the self-employed PRSI rate (Class S) from 3% to 2% is estimated to cost approximately €220 million in a full year. Of course if introduced as a package, the combination of measures could give rise to a compound effect.

Revisions to PRSI rates and the employee ceiling are considered annually in a budgetary context, with changes incorporated into the Social Welfare (Consolidation) Act, 2005, as required.

Arthur Morgan (Louth, Sinn Fein)
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Question 410: To ask the Minister for Social and Family Affairs when the second actuarial review of the social insurance fund, provided for under section 17 of the Social Welfare Act 1998 will be published. [17198/07]

Martin Cullen (Waterford, Fianna Fail)
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The Social Welfare Consolidation Act, 2005, requires that an actuarial review of the financial condition of the social insurance fund will be undertaken at five-year intervals. The first actuarial review was published in October, 2002 and reflected the position of the Social Insurance Fund at the end of 2000.

The second actuarial review will update that report to address the position of the Fund at the end of 2005. The focus of the examination is the income of the Fund (including the accumulated surplus), the contributory pensions and benefits paid from the Fund, including non-cash benefits (household benefits package) and other payments (redundancy and insolvency payments). The period to be covered by the review is 55 years (from 2006 to 2061).

Following an evaluation process during the summer of 2006, external consultants were selected to carry out the actuarial review. Work on the review has now been completed. When the report has been considered by Government, it will then be laid before the houses of the Oireachtas. There is no date fixed for publication as yet but, legislation requires that a copy of the report be laid before the Oireachtas within six months of completion, publication.