Written answers

Wednesday, 29 November 2023

Department of Employment Affairs and Social Protection

Social Welfare Benefits

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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95. To ask the Minister for Employment Affairs and Social Protection if she will issue a decision on an application for a disability allowance by a person (details supplied). [52670/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Disability Allowance (DA) is a weekly allowance paid to people with a specified disability who are aged 16 or over and under the age of 66. This disability must be expected to last for at least one year and the allowance is subject to a medical assessment, means test and Habitual Residency conditions.

My Department received an application for DA in respect of the person concerned on 31 October 2023. The processing time for individual DA claims may vary in accordance with their relative complexity in terms of the three main qualifying criteria, the person’s circumstances and the information they provide in support of their claim.

A letter requesting information to assist with the person's application was sent to them on 8 November 2023. This information was required to determine eligibility for DA. To date, my Department has not received the requested information.

On receipt of this information, a decision will be made and the person concerned will be notified of the outcome.

I trust this clarifies the matter for the Deputy.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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96. To ask the Minister for Employment Affairs and Social Protection if the case of a person (details supplied) will be examined, who recently received a redundancy payment classified as stamp ‘S’, despite never having been self-employed, and believes they should be on class A stamps; and if she will make a statement on the matter. [52684/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Pay Related Social Insurance (PRSI) contributions go to the Social Insurance Fund (SIF) which helps pay for Social Welfare benefits and pensions.

Most employers and employees (between the ages of 16 and pensionable age, currently 66 years) pay social insurance (PRSI) contributions.

The PRSI payments made in recent years by the person concerned have been examined.

The employee PRSI contributions were deducted from the individual at Class A while in employment, and up to and including redundancy, in accordance with the Social Welfare Acts.

The PRSI deductions referenced by the Deputy were unrelated to employment or redundancy incomes. They arose after the individual made drawdowns from a privately held Revenue Approved Retirement Fund.

Approved Retirement Funds have a long-term investment nature and capital drawdowns are subject to a PRSI deduction in the same manner as other investments, such as dividends and interests. The PRSI charged on such incomes is levied at the same rate that applies to the self-employed, hence why the individual was subject to a 4% charge, recorded under PRSI Class S.

When individuals are deemed liable to PRSI as a self-employed contributor, they are awarded an annual compliment of 52 Class S contributions, which are fully reckonable towards the contributory State pension.

I trust this reply clarifies the matter.

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