John Lyons (Dublin North West, Labour)
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Question 347: To ask the Minister for Social Protection the position regarding a refund in respect of a person (details supplied) in Dublin 9 in relation to the overpayment of PRSI contributions. [31904/12]

Joan Burton (Dublin West, Labour)
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New arrangements relating to PRSI for public and civil servants came into operation with effect from 6 April 1995. Public and civil servants who had been in employment before 6 April 1995 and continued to be so employed without a break in service were insured at the modified rate of PRSI contribution, Class D, whereas new entrants paid PRSI Class A.

Following on from the 6 April 1995 changes, a number of different departments and Boards applied the incorrect rate of PRSI in certain situations. This resulted in an overpayment of PRSI contributions and an underpayment of pension contributions in respect of the employees concerned.

Where the incorrect class of PRSI has been paid the Department of Social Protection refunds the PRSI contributions where the conditions for refund are met. When a PRSI refund is being calculated any benefits paid to the person on foot of the class A PRSI contributions are deducted from the amount of refund due.

The position in relation to the person concerned is that her employer in the Health Services contacted the Department in November 2011 to clarify the correct contribution class for her employment. It was confirmed that she had been paying the incorrect PRSI class since she was made permanent in 1999. A refund of PRSI in respect of the PRSI class A contributions was sought. However, no refund is due in this case as illness benefit paid out exceeds the amount of PRSI refund available.

A four year limit on the return of PRSI contributions was introduced in the Social Welfare and Pensions (No. 2) Act 2009 and has been in effect since 1 January 2010. The time limit governing the refund of PRSI contributions is in line with the arrangements of the Revenue Commissioners governing the refund of tax.