Written answers

Wednesday, 9 November 2022

Department of Employment Affairs and Social Protection

Public Sector Pensions

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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94. To ask the Minister for Employment Affairs and Social Protection the extra assistance provided by her Department in budget 2023 in terms of double payments and so on to pensioners who are not entitled to the State pension (contributory) as they were public servants and paid a modified PRSI contribution and who are suffering like all pensioners form the effects of the increase in fuel prices and the cost-of-living; and if she will make a statement on the matter. [55810/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Civil and public sector employees, recruited prior to 6 April 1995, pay social insurance contributions at modified rates under classes B, C and D.  Amongst the class B contributors are permanent and pensionable civil servants and Gardaí, the class C contributors are commissioned army officers and members of the army nursing service and the class D contributors include permanent and pensionable employees in the public service other than those insured at classes B and C.  All civil and public servants recruited from 6 April 1995 pay social insurance at the standard class A rate.  

Prior to 6 April 1995, civil and public servants did not have access to the full range of social insurance benefits as their terms of employment protected them against the main contingencies of illness and old age, and the risk of unemployment was not considered a factor due to the nature of their employment. Consequently, such contributors pay less in social insurance contributions in return for fewer social insurance benefits. 

While the modified rates of social insurance under classes B, C and D do not give entitlement to the State Pension (Contributory), such contributors may, subject to a means test, qualify for the State Pension (Non-contributory).  The maximum weekly rate of State Pension (Non-Contributory) was increased by €12 in Budget 2023, with effect from January 2023.

In addition to the €600 of Energy Credits which will benefit all households in the coming months, I announced an important measure to assist pensioners with energy costs as part of the Social Protection Budget Package - a new means test for Fuel Allowance for people aged over 70.  This change will mean that a single person aged over 70 can have income of up to €500 per week and qualify for Fuel Allowance, while a couple can have income of up to €1,000 per week.  

I trust this clarifies the matter for the Deputy.

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