Ruairi Quinn (Dublin South East, Labour)
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Question 188: To ask the Tánaiste and Minister for Education and Skills if persons who were employed to correct exam papers for the State Examinations Commission are liable to pay the Public Sector Pension Levy; if she will issue a directive that these staff should not be liable for the pension levy in view of the fact that the sums involved are less than the €10,000 minimum threshold; if she will acknowledge that these staff are temporary and will never receive a public sector pension; and if she will make a statement on the matter. [32168/10]

Mary Coughlan (Donegal South West, Fianna Fail)
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The State Examinations Commission has statutory responsibility for operational matters relating to the certificate examinations including the payment of examiners and superintendents.

Persons engaged by the State Examinations Commission (SEC) on contract work in the conduct of the examinations (such as superintendents, examiners, etc) are liable to the Pension Related Deduction (PRD) if they meet the conditions of eligibility as set down in the Financial Emergency Measures in the Public Interest Act 2009. Therefore if they are public servants and members of public service pension schemes or if they are in receipt of pension or in receipt of benefit in lieu of membership of a public service pension scheme, they are liable to have PRD applied to their examinations earnings. The treatment of PRD by the State Examinations Commissions is in line with the legislation and instructions from the Department of Finance.

The thresholds for application of the different rates of PRD are calculated on an individual's overall reckonable earnings. The instructions issued by the Department of Finance to Departments and agencies in 2009 indicate that eligible persons in subsidiary public service employment should have the top rate of PRD applied to those subsidiary earnings.

I understand that a PRD deduction is not made by SEC where an examiner is not a public servant or eligible to benefit from a public service pension scheme or a benefit in lieu. However, the majority of examiners are either serving or retired teachers to whom a PRD deduction applies under the Act. The fact that examination earnings are not pensionable does not alter this position under the Acts.

The application of PRD to examinations contract earnings reflects the reality that most persons engaged on examinations contract work are members of the teaching profession. While the sums that they receive from the SEC may be under the PRD minimum threshold of €15,000 per annum, their overall public service earnings would be far in excess of this amount. In order to ensure that the Exchequer receives the correct benefit of this deduction the SEC generally applies PRD at the top rate of 10.5% to examinations contract work.

All contract personnel have been provided with clear information on how the deduction applies and have had an opportunity to notify the SEC that they are exempt from the deduction or that a lower rate of PRD should apply. For example a retired teacher already in receipt of a teacher's pension has the option of nominating the SEC as their main employer in which case PRD applies only to their examinations earnings.

The majority of those employed on contract work on the certificate examinations are members of the teaching profession. While their examinations earnings may not be pensionable, they will receive a public service pension on retirement, and accordingly, the PRD deduction applies to their subsidiary public service employment earnings under the Act.