Barry Cowen (Offaly, Fianna Fail)
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15. To ask the Minister for Social Protection to elaborate on plans to extend social protection benefits to local councillors who are currently not entitled to claim social protection benefits despite the fact that they pay Pay Related Social Insurance contributions. [18559/16]

Leo Varadkar (Dublin West, Fine Gael)
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Since January 2011, public office holders pay PRSI at the Class K rate of 4% on their income as an office holder, provided that income exceeds €5,200 a year.

All public office holders are liable to pay the contribution regardless of age. Payment of Class K PRSI does not establish any social insurance entitlements.

Prior to the introduction of the Class K charge, all public office holders were exempt from PRSI on their income as a public office holder. Then, as now, they could establish and protect their social insurance entitlements based on their non-office holder activities or through the payment of Voluntary Contributions.

The Class K PRSI charge for public office holders was introduced on the basis that public office holders were a group who unlike most self-employed and employees did not pay a 4% contribution and so has a lower marginal rate of income tax/USC and PRSI.

I am currently examining whether changes are required to the basis on which class K is charged for councillors. There are a number of possible approaches including removing the Class K charge from councillor or bringing them into cover under Class S in line with the self-employed generally.

There are pros and cons to each approach. In particular, any changes to the current Class K arrangements will need to take into account the social insurance and occupational pension position of office holders generally.

I will be consulting with relevant Ministers on this issue. I also intend meeting with the representative body for councillors to discuss the options available.