Barry Cowen (Offaly, Fianna Fail)
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517. To ask the Minister for Social Protection if a person elected as a councillor that is already paying an S stamp will receive additional credits or benefits when they begin paying the new S stamp. [20520/17]

Leo Varadkar (Dublin West, Fine Gael)
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I was pleased to introduce Regulations last December whereby county councillors were brought, in their capacity as public representatives, into social insurance cover for the first time with effect from January 1 of this year. The new arrangements (PRSI Class S payable at 4%) apply to all county councillors other than those aged 66 and over and those who are, in conjunction with their membership of a county council, permanent and pensionable civil and public servants recruited before April 1995.

Prior to the introduction of the new arrangements, county councillors had been, since 2011, liable to pay PRSI at Class K (4%) along with other office holders such as members of the Houses of the Oireachtas and the judiciary. PRSI Class K contributions do not provide cover for any social insurance benefit or pension. I introduced the new arrangements in recognition of the fact that county councillors do not have access to occupational pensions arising from their role as public representatives and that, therefore, it was important that county councillors were covered for social insurance pensions. County councillors are no longer liable to make a PRSI Class K contribution.

Social insurance contributors can be awarded a maximum of 52 contributions each year. Where, for example, someone has two (or more) concurrent employments each of 52 weeks duration in a given year, a maximum of 52 contributions are awarded for access to benefits and pensions. Similar arrangements apply where an individual is both an employee and self-employed. As the maximum of 52 Class S contributions are awarded each year for self-employed contributors regardless of the actual number of weeks of self-employment (subject to a minimum paid contribution of €500) two concurrent occupations both paying Class S contributions do not give rise to additional credits or benefits for the contributor.

The position, therefore, in respect of county councillors is as follows:

County councillors who do not have another insurable employment or self-employment now pay Class S and are now covered, as self-employed contributors, for the State Pension (contributory) and Widow’s, Widower’s or Surviving Civil Partner’s Pension (contributory), Guardian’s Payment (contributory), Maternity Benefit, Adoptive Benefit, Paternity Benefit, Treatment Benefits (from March 2017) and Invalidity pension (from December 2017).

County councillors who are concurrently engaged in other types of insurable self-employment will be treated in the same way as all other people with multiple self-employments. A maximum of 52 Class S contributions will be recorded on their social insurance record. Typical examples are individuals who are engaged in two unrelated self-employments or who have earned and unearned self-employment income or certain company directors who pay Class S (under Schedule E) in their role as directors and Class S (under Schedule D) on income which might or might not be related to their shareholding in a company.

County councillors who are also engaged in insurable employment or employments, (such employments typically paying Class A) will be treated in the same way as other individuals who are in concurrent insurable employment and insurable self-employment. 52 Class S contributions will be due but this number will be reduced by the number of Class A contributions from insurable employment so that the overall total is no more than 52. This arrangement is to the benefit of the individuals concerned and reflects the fact that a wider range of benefits are available under Class A.

In Budget 2017, I was pleased to announce a number of measures which will benefit the self-employed, including Councillors. From March 2017 the self-employed have had access to the treatment benefit scheme which includes free eye and dental exams, and contributions towards the cost of hearing aids. Treatment benefit entitlements will be extended for both employees and the self-employed from October 2017 providing further dental and optical benefits.

More significantly, self-employed contributors will be eligible for the invalidity pension from December 2017. For the first time, this will give the self-employed access to the safety-net of State income supports if they have a serious illness or injury that prevents them from working without having to go through a means test. This is a real advance in the level of cover available to the self-employed, including county councillors.

I look forward to introducing further improvements for the self-employed in line with our commitments in the Programme for a Partnership Government.