Written answers

Wednesday, 5 May 2010

Department of Education and Science

Pension Provisions

9:00 pm

Photo of Christy O'SullivanChristy O'Sullivan (Cork South West, Fianna Fail)
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Question 373: To ask the Tánaiste and Minister for Education and Skills the position regarding those who occasionally work as a substitute teacher and have been subject to the pension related deduction even though they fall below the €15,000, but might sometimes exceed the €750 fortnightly gross pay on which her Department applies the pension related deduction; the course of action that is open to them to receive a refund; and if an arrangement can be put in place to rectify such an anomaly. [17830/10]

Photo of Jim O'KeeffeJim O'Keeffe (Cork South West, Fine Gael)
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Question 410: To ask the Tánaiste and Minister for Education and Skills if her attention has been drawn to the anomaly affecting substitute teachers in relation to deductions in a situation where pension related deduction is zero for those earning less than €15,000 per annum however her Department deducts PRD fortnightly when the pay of a substitute teacher exceeds €750 gross for the fortnight; the arrangements that are in place to refund such pension related deductions to persons affected; and if she will make a statement on the matter. [18122/10]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 373 and 410 together.

The Pension Related Deduction (PRD) is a compulsory deduction from salaries of personnel funded by the Oireachtas that have access to a pension scheme. The deductions are made on a week one basis, i.e. each fortnightly payment is regarded in isolation and deductions are made if the amount of pay exceeds the fortnightly exemption levels. At the end of the financial year, a balancing exercise is done on a cumulative basis for each person taking into account all their income that attracted the PRD. Where a person has not exceeded the thresholds, a refund will issue and where a person has underpaid PRD the balance will have to be recovered.

The fact that many education personnel work in part-time and substitute capacities in various education sectors has increased the complexity of the year end balancing procedure. In addition, any persons who have had arrears payments which relate to the 2009 financial year have to have adjustments made to take into account the fact that income can be charged at different PRD levels.

A system to deal with the reconciliation of PRD payments taking cognisance of the complexities referenced is being developed at present. Once this development is completed and implemented on the payrolls arrangements will be made to issue refunds, where appropriate, to teachers and special needs assistants at the earliest opportunity.

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