Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Social Protection if a person who was working in the public sector and also had self employment income at the same time is entitled or obliged to pay self-employed PRSI on the self employed income; if these contributions may be used for State pension entitlement purposes; and if she will make a statement on the matter. [54992/12]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

Permanent and pensionable employees in the public service, other than those who were recruited after 6 April, 1995, are liable to pay social insurance contributions at modified PRSI rates. Subject to having the required number of PRSI contributions, employees who pay modified contributions may be entitled to the following payments:

(a) widow’s/widower’s (contributory) pension and surviving civil partner’s (contributory) pension;

(b) guardians payment (contributory);

(c) bereavement grant, and

(d) carer’s benefit.

Modified rate contributions are not reckonable for establishing entitlement to State pension (contributory). Currently modified rate contributors are exempt from PRSI in respect of self-employed earned income (from a profession or trade) and any other unearned income. This exemption has been abolished in Budget 2013. All such income will become liable to PRSI at the rate of 4%. There will be no entitlement to social insurance benefits based on the payment of this contribution.