Terence Flanagan (Dublin North East, Fine Gael)
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Question 410: To ask the Minister for Social and Family Affairs her views on a matter (details supplied); and if she will make a statement on the matter. [42193/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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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, 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 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 €500 per week and to pay 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. Health contributions do not in any way relate to private health insurance which is used to pay for private care in hospital or from various health professionals in hospitals or in their practices.