Written answers

Tuesday, 19 October 2021

Department of Employment Affairs and Social Protection

Social Insurance

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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618. To ask the Minister for Employment Affairs and Social Protection if she will review the record of a person (details supplied) in order for their contributions to corrected; and if she will make a statement on the matter. [50697/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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To begin with, PRSI class K can be paid by individuals other than public representatives.

In this case the PRSI class K currently on record is the class of PRSI that was returned by the individual’s employer or their representatives.

Where an individual is in fact an employee of their spouse, then that employment is excepted employment under the provisions of paragraph 1 of Part 2 of Schedule 1 of the Social Welfare Consolidation Act 2005 (as amended) and is not insurable.  The correct class of contribution in such a case was PRSI class K or M up to 31 December 2010 and class M thereafter.

Therefore, if the individual referred to by the Deputy is in fact an employee of their spouse, the person should contact Scope Section in my Department to further look into the matter and issue an insurability decision.  If the person has been incorrectly classified then their contribution record will be corrected and they may be entitled to a PRSI Refund.  However, it should be noted that such refunds are subject to a four-year time limit.

Scope Section can be contacted directly by email atscope@welfare.ieor at the following address - 

Scope

Floor 5

Áras Mhic Dhiarmada

Store Street

Dublin 1

D01 WY03

I trust this clarifies the matter for the Deputy.

Photo of Marian HarkinMarian Harkin (Sligo-Leitrim, Independent)
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619. To ask the Minister for Employment Affairs and Social Protection her views on the recommendation in view of the recent report by the Pensions Commission that the exemption to pay PRSI on occupational, personal and public sector pensions will be removed; and if she will make a statement on the matter. [50731/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Pensions Commission was established, inter alia, to develop options for Government to consider in addressing the sustainability of the State pension system and the social insurance fund.  The Commission has completed it work and its report was published on the 7th October 2021.  The Commission’s Report has unambiguously established that the current State Pension system is not sustainable into the future and that change is needed.  It is a very comprehensive and detailed report that takes account of responses to a very extensive consultation process.  The report sets out a wide range of recommendations, including measures to increase  Social Insurance Fund (SIF) income.    

In the interests both of older people and of future generations of older people, the Government intends to consider the comprehensive and far reaching recommendations in the Commission’s Report very carefully.    The report has been referred to the Joint Oireachtas Committee on Social Protection and the Commission for Taxation and Welfare for their views.   I will also work with my officials over the coming months to examine each of the recommendations carefully and will consult with colleagues in Government through the Cabinet Committee system.  I intend to bring a recommended response and implementation plan to Government by the end of March 2022.  I think it is really important that we complete that work before reaching conclusions.

The State Pension is the bedrock of the pension system in Ireland.  It is extremely effective at ensuring that our pensioners do not experience poverty.   This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers. 

I trust this clarifies the matter for the Deputy. 

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