Richard Bruton (Dublin North Central, Fine Gael)
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Question 1293: To ask the Minister for Social and Family Affairs if target time limits for the processing of applications in respect of a refund of social insurance payments have been set in which a person is not liable to payment; and if problems have arisen with lengthy turnaround times in issuing such payments. [30155/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Refunds of Pay Related Social Insurance (PRSI) are made to employers and employees where contributions have been paid in error. Most refunds arise as a result of people paying at the incorrect rate and relate mainly to the following: persons whose class of insurance changes, following an insurability decision; persons earning either over or under the statutory earnings threshold or ceiling; employees over 66 years who continue to pay the full PRSI rate, separated persons who make enforceable maintenance payments; employees paying Class A contributions who are in receipt of Maternity Benefit and/or Illness Benefit payments, Medical cardholders, recipients of Widow's Pension, Deserted Wife's Benefit, One Parent Family Payments, and those with EU equivalents who are not liable to pay the Health Contribution; persons who enter insurable employment after the age of 56 and who have no entitlement to a State Pension (Contributory).

The volume of applications for refunds of PRSI has increased dramatically in recent years. In the last four years the number of applications has increased by almost 400% and this has inevitably given rise to a backlog of up to 6 months in processing refund applications. Last year refunds totalling €16.5 million were paid to more than 10,500 applicants.

The Department endeavours to process applications for refunds of PRSI as efficiently as possible. In order to ensure that applications are dealt with in a fair and equitable manner, they are processed in chronological order.