asked the Minister for Social Welfare if he will make a statement regarding the circumstances in which former employees and employees of Sealink find themselves vis-à-vis welfare entitlements given the change in status of this company; and the effect that the change of status has had on the rates at which contributions were made.
Written Answers. - Sealink Employees.
56.
In accordance with the provisions of social welfare legislation, permanent and pensionable employment by a statutory transport undertaking is insurable at the Class D rate of PRSI contribution. This was the rate paid in respect of the permanent and pensionable staff of Sealink up to their privatisation in July 1984. Class D provides cover for contributory widow's pension and orphan's allowance, deserted wife's benefit and occupational injuries benefit.
Upon privatisation of the company, the staff became insurable at the Class A rate, which provides cover for the full range of social insurance benefits. This is the rate at which contributions are now being paid in respect of these employees.
The current Class A contribution rate is 20.08 per cent, i.e. 12.33 per cent by the employer and 7.75 per cent by the employee. The Class D rate is 5.43 per cent, i.e. 2.28 per cent by the employer and 3.15 per cent by the employee.
The change in contribution class means that employees who meet the statutory conditions can qualify for the full range of social insurance benefits and contributory pensions. Entitlement in individual cases will, of course, depend on the person's earlier record of Class A contributions. The implications in all the individual cases have already been explained on request to Sealink. If the Deputy has any further query on any case, the information can be made available.
As regards former employees of Sealink, their entitlements would depend largely on the combination of their former and current Class A contributions if they are still working.