Written answers

Thursday, 25 September 2008

Department of Social and Family Affairs

Pension Provisions

5:00 pm

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 232: To ask the Minister for Social and Family Affairs if she will examine the case of a person (details supplied) in County Wicklow; if and when she will address the anomalous position of persons in such circumstances; the specific provisions in primary or secondary legislation which permits the State to deduct PRSI under class A1; and if she will make a statement on the matter. [31856/08]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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This case pertains to an individual who, being aged 64, working in Ireland, and in receipt of a UK Old Age Pension, is querying the PRSI Class at which she is liable to make contributions.

As specified in the Social Welfare Consolidation Act 2005, Section 12 (1) (a), '. . . every person who, being over the age of 16 years and under pensionable age, is employed in any of the employments specified in Part 1 of Schedule 1, not being an employment specified in Part 2 of that Schedule, shall be an employed contributor for the purposes of this Act'.

Under Section 2 of the Act 'pensionable age' is defined as 'the age of 66 years'. As the individual in question is aged under 66 she is liable, as an employed contributor, to make Class A contributions, with the relevant sub-class being decided by the level of weekly earnings.

The individual has suggested that she should be liable to pay Class J contributions. However, liability to pay Class J contributions, as set down in Article 88 of Statutory Instrument 312 of 1996, pertains to 'an employment specified in Part 1 of the First Schedule to the Principal Act, where the employee has attained pensionable age'.

It is clear from the above that she is not liable to pay Class J. The fact that she is in receipt of a UK Old Age Pension, which is based on a retirement age of 60, is irrelevant in this regard as eligibility is determined by age and employment status, rather than entitlement to a payment from another Member State. Therefore no anomaly exists in relation to this matter.

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