Olivia Mitchell (Dublin South, Fine Gael)
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Question 223: To ask the Minister for Education and Skills the date on which the error in classification for PRSI and superannuation of teachers was first identified in his Department; and if he will make a statement on the matter. [29191/12]

Ruairi Quinn (Dublin South East, Labour)
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In 1995 the class A rate of PRSI was extended to many categories of public service employment to which modified rate (class D in the case of teachers) PRSI had previously applied. All teachers appointed for the first time after the 6th April 1995 pay class A rate PRSI. Teachers appointed prior to the 6th April 1995 who after that date resigned or retired from their teaching posts and who subsequently obtained new appointments also pay class A rate PRSI. Teachers appointed prior to the 6th April 1995 who took a period of approved leave of absence such as a career break since that date continue to pay Class D rate of PRSI on resumption of duty.

Eligible Part Time (EPT) teachers appointed prior to 1995, paid class A rate PRSI as their service was not pensionable and they continued to pay class A rate PRSI after 1995 until the 31st August 1996. On the 1st September, 1996, pensionability for EPTs was introduced. This was done retrospectively, from 1998 following acceptance of the PCW (Programme for Competitiveness and Work). Substitute service was non pensionable and such teachers paid class A rate PRSI. Ongoing pensionability was only introduced from 2001. This service, by its nature, is interrupted service. Teachers employed as substitutes continue to pay class A rate PRSI.

Temporary Whole Time Teachers in service prior to 1996 paid class A rate PRSI contributions where they were not members of the pension scheme. Where they subsequently joined the pension scheme and had remained in continuous service from a date prior to the 6th April 1995 their PRSI Class was changed to Class D.

The Deputy will appreciate that the determination of the PRSI class of a teacher since 1995 has been a complex matter. Due to the complexities of the employment capacities and the admission of certain part-time teachers to the pension scheme, a small number of teachers were incorrectly classified. When a case is identified, which tends to be at the time of retirement the error is then rectified. Where a teacher has been classified as Class A PRSI instead of Class D, it results in an overpayment of PRSI contributions and an underpayment of Pension contributions. Since becoming aware of this difficulty, my Department has been working with the Department of Social Protection to resolve these cases. A protocol is being agreed to ensure that teachers are not disadvantaged.