Written answers

Thursday, 29 June 2023

Department of Employment Affairs and Social Protection

Departmental Staff

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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332. To ask the Minister for Employment Affairs and Social Protection further to Parliamentary Question Nos. 828 and 829 of 13 June 2023, what benefits, if any, accrued to Department employees who were former community welfare officers who paid a 5% levy on their incomes from October 2011 to December 2015; if no pension benefit has accrued in respect of these payments, if her Department will return these payments to the employees; and if she will make a statement on the matter. [31988/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Former Community Welfare Officers (CWOs) were transferred to the Department of Social Protection from the HSE on 1 October 2011 on the principle that their existing terms and conditions of employment would neither improve nor diminish by reason of the transfer and staff retained their pension rights and entitlements.

During the course of the negotiations of the Public Service Stability Agreement (2013-2016) the Public Service Executive Union (PSEU) raised grade assimilation issues relating to former CWOs. It was agreed that the parties would work towards resolving grade assimilation (with the comparative grade of HEO) in the Department of Social Protection within the lifetime of the collective agreement.

Arising from talks on the Lansdowne Road Public Service Agreement, it was agreed that any anomalies relating to former HSE staff at PSEU member grades would be resolved with effect from 1 January 2016 on the understanding that agreement had been reached between the parties on all outstanding issues related to the matter. These issues included that relating to former CWOs who were pre-1995 entrants to their positions and who paid a pension contribution of 5% which was not paid by other pre-1995 entrants in the Department of Social Protection.

An Agreement on the Assimilation of the Pay and Conditions of Former Community Welfare Officer staffbetween the Department of Public Expenditure & Reform, Department of Social Protection and the Public Service Executive Union (representing CWS) was made on the 30 September 2015 which provided for the abolition of the 5% pension contribution with effect from 1 January 2016, with no retrospection. The pension contribution issue was tied in with a number of other outstanding issues, including pay and annual leave which were also covered under the terms of the Agreement.

Legal proceedings seeking reimbursement of the pension contributions paid prior to the agreement reached on 1 January 2016 were taken in the Dublin District Court and WRC but were struck out and further claims were voluntarily withdrawn.

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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333. To ask the Minister for Employment Affairs and Social Protection the total number of employees of her Department who were Class B PRSI contributors between October 2011 and December 2015; the total number of employees who were Class B PRSI contributors who paid a 5% levy on their incomes from October 2011 to December 2015; if she will provide details of the context of the payment of this levy; if any of the total number of overall employees who paid the levy were not former community welfare officers who transferred to her Department from the HSE in October 2011; and if she will make a statement on the matter. [31989/23]

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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334. To ask the Minister for Employment Affairs and Social Protection if she will identify which legislation underpins the payment of a 5% levy by Class B PRSI contributors who became employees of her Department following their transfer from the HSE in 2011; if she will point to the relevant sections and/or subsections in the relevant legislation providing for the making of this payment in part of October 2011, November 2011, December 2011 and the years 2012, 2013, 2014 and 2015; the benefits these specific employees derived from the payment of this levy; the length of time they paid it for; if she will review whether the collection of this levy after the early part of October 2011 was in fact not provided for in law; and if she will make a statement on the matter. [31990/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 333 and 334 together.

The rate of PRSI and the pension contribution are mutually exclusive. More specifically, the 5% Pension contribution is separate and distinct from the class of PRSI paid. PRSI contributions go to the Social Insurance Fund and is separate to any occupational pension scheme contributions.

Community Welfare Service (CWS) staff worked for the Local Health Boards and were part of the Local Government Superannuation Scheme (LGSS) which required a pension contribution amounting to 5% of salary. Section 23 1 (a) of S.I. 455/1998 sets out the contribution legislation in the LGSS.

When Local Health Boards were abolished and the HSE established, CWS staff transferred to the HSE and with it, to the Health Service Executive Employee Superannuation Scheme on terms no less favourable, and the pension contribution remained as 5% of salary. Section 14.2 (b) of S.I. 362/2010 sets out the contribution legislation in the HSE scheme.

On the 1st October 2011 staff from the Community Welfare Services transferred permanently to the Department of Social Protection.

In line with Labour Court recommendations LCR 20116, 20117, and pursuant to Part 4 of the Social Welfare and Pensions Act 2010 in conjunction with the Public Service Agreement 2010-2014, CWS staff transferred to the Department of Social Protection on the principle that their existing terms and conditions of employment would neither improve nor diminish by reason of the transfer. The pension contribution remained as 5% of salary.

During the course of the negotiations of the Public Service Stability Agreement (2013-2016) the Public Service Executive Union (PSEU) raised grade assimilation issues relating to former Community Welfare Officers (CWO). It was agreed, as part of the aforementioned agreement that the parties would work towards resolving the position regarding the grade assimilation issues within the lifetime of the collective agreement. Arising from talks on the Lansdowne Road Agreement, it was agreed that any anomalies relating to former HSE staff at PSEU member grades would be resolved with effect from 1 January 2016 on the understanding that agreement had been reached between the parties on all outstanding issues related to the matter. These issues included former HSE staff who were pre-1995 entrants and who paid a pension contribution of 5% which was not paid by other pre-1995 HEOs.

A final decision on the issue of the pension contribution paid by Community Welfare Officers who formerly worked under the HSE and paid a 5% contribution paid between 2011 and 2015 was agreed as part of a number of outstanding items, in the Agreement on the Assimilation of the Pay and Conditions of Former Community Welfare Officer staff. This agreement dated 30th September 2015 followed negotiations between the Department of Public Expenditure & Reform, Department of Social Protection and the Public Service Executive Union (representing CWS staff). The terms of the agreement provided among other things, that the 5% pension contribution would cease from the 1 January 2016. The pension contribution issue was tied in with a number of other outstanding issues including pay and annual leave. On foot of that agreement, with effect from 1 January 2016, the requirement for pre-1995 former HSE staff to pay the pension contribution of 5% was removed and no retrospection applied.

It is not possible to provide the total number of employees in my Department who were Class B PRSI contributors between October 2011 and December 2015 or the total number of employees who were Class B PRSI contributors who paid a 5% pension contribution between October 2011 and Dec 2015 as these numbers were constantly fluctuating due to the turnover of staff in the Department.

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