Cian O'Callaghan (Dublin Bay North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

192. To ask the Minister for Employment Affairs and Social Protection the pension entitlements of a person that returned to work in the civil service at age 45 for 20 years and paid the B stamp for PRSI as they were not allowed to pay A stamp; and if he will make a statement on the matter. [8276/25]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

My officials advise me that they have been unable to obtain clarification from the Deputy’s office on the specific individual issue raised in the question. Therefore, it is being taken that the query relates to the qualifying criteria for the state pension (contributory) under PRSI class B. Social insurance contributions are made in accordance with the legislation and the employment terms and conditions in force at the time they are made and eligibility for social insurance benefits flow from these contributions.

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. For example, class B contributors currently pay a contribution at the rate of 1% on their weekly earnings up to €1,443 and 4.1% on weekly earnings over that amount and their employers pay a contribution of 2.11% on all employee earnings. Class B contributors are currently entitled to widow's, widower's or surviving civil partner's (contributory) pension, guardian's payment (contributory), (limited) occupational injuries benefits, parent's benefit and carer's benefit. Class B contributions do not provide entitlement to the state pension (contributory), except in certain circumstances where, in conjunction with class A contributions, they can be used when calculating entitlement to a mixed-insurance pro-rata pension.

In contrast, civil and public servants recruited from 6 April 1995 pay a class A social insurance contribution of 4.1% on their weekly earnings and their employers pay a contribution of 8.9% where employees’ weekly earnings are €527 or less and 11.15% where their employees’ weekly earnings exceed €527. Class A contributors have access to the full range of social insurance benefits, including state pension (contributory).

If the Deputy wishes to provide more details of the individual circumstances and work history of the person concerned, my officials will examine the matter further.