Written answers
Thursday, 27 January 2011
Department of Finance
Universal Social Charge
2:00 pm
Noel Ahern (Dublin North West, Fianna Fail)
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Question 30: To ask the Minister for Finance the position regarding the introduction of the universal social charge; if he will outline the rates applying to retired public servants in receipt of medical cards and the rates applying where the sole income is public service pension; where income is public service pension and other, that is another occupational pension and social welfare State pension; and if he will make a statement on the matter. [4398/11]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that the Universal Social Charge (USC) is applied at the following rates: · 2% on the first â¬10,036 (â¬193 per week)
· 4% on the next â¬5,980 (â¬193.01 to â¬308.00 per week) and
· 7% on the balance.
For persons aged 70 years and over the USC is applied at the following rates:
· 2% on the first â¬10,036 (â¬193 per week)
· 4% on the balance.
In addition, I should point out that I introduced a Committee Stage amendment during the Finance Bill 2011, which provides for medical card holders to be chargeable to the USC at the following rates:
· 2% on the first â¬10,036 (â¬193 per week)
· 4% on the balance.
Furthermore, it should be noted that payments from the Department of Social Protection such as the contributory and non-contributory State pension are exempt from the USC. Also, where an individual's total income which is chargeable to the USC, is below â¬4,004 in a year of assessment, the USC would not apply.
Therefore, based on the question put forward by the Deputy, where a retired public servant is in receipt of a medical card and has a State pension from the Department of Social Protection and a public service pension they will only be chargeable to the USC on their public service pension at a rate of 2 per cent on the first â¬10,036 per annum and 4 per cent on the balance, assuming it is above â¬4,004 per annum.
John McDermott
Posted on 1 Feb 2011 9:37 am (Report this comment)
In a number of European countries (Finland for one)a retired worker in receipt of a private pension gets no state pension;and retired state employees do not get two state sponsored pensions in any circumstances.