Written answers

Thursday, 7 February 2013

Department of Social Protection

Social Insurance Payments

Photo of Sandra McLellanSandra McLellan (Cork East, Sinn Fein)
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To ask the Minister for Social Protection if she will implement the changes necessary to ensure that Public Representatives currently on class K stamp are eligible to sign on for job seekers allowance or other assistance when they lose their seats, now that plans to make around 800 town councillors redundant with pending local Government reform; and if she will make a statement on the matter. [6403/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Office Holders, including members of a local authority within the meaning of the Local Government Act 2001 which includes town councilors, are liable to pay PRSI at the Class K rate of 4% on remuneration received in their capacity as an Office Holder. Class K PRSI is payable on all such income provided it exceeds €5,200 per annum. PRSI contributions made under Class K do not give rise to entitlement for social insurance benefits.

Where an individual ceases to be an Office Holder, they may qualify for assistance as a jobseeker. The jobseeker's schemes provide income support for people who have lost work and are unable to find alternative employment. It is a fundamental qualifying condition for these benefits that a person must be available for full-time work. Jobseeker’s Allowance is a means-tested payment available to persons who are involuntarily unemployed and are available for and genuinely seeking full-time work. Under current arrangements any person, including former public representatives, who satisfies these criteria may, subject to the circumstances of an individual case, qualify for Jobseeker's Allowance.

Persons who cease to be covered by compulsory social insurance, including Office Holders, may opt to protect their existing long-term social insurance pension entitlements by becoming insured on a voluntary basis and paying Voluntary Contributions. Payment of Voluntary Contributions does not provide social insurance cover for short term benefits such as jobseeker’s benefit. Persons who wish to become a Voluntary Contributor must satisfy certain contributions and must apply to become a Voluntary Contributor within 12 months after the end of the contribution year in which they were last compulsory insured.

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