Vol. 449 No. 1
117 Mr. McGrath asked the Minister for Education the rate of PRSI which will be paid by teachers commencing employment after 6 April 1995; the benefits which these contributions will bestow on the subscriber; and the way in which the pension entitlements of these subscribing teachers will be affected. [2896/95]
As indicated in the Minister for Finance's 1994 Budget Statement, modified PRSI will no longer apply to new public sector employees recruited on or after 6 April, 1995. Accordingly, teachers commencing employment after 5 April 1995, will be liable for the Class A rate of PRSI contribution.
The application of full PRSI status to such teachers will mean that they will be treated no differently from existing full-rate PRSI contributors as far as social welfare benefits are concerned. The occupational pension benefits and contributions of such teachers will be amended to take account of their entitlement to social welfare pension benefits.
The following arrangements will apply to teachers who, after 5 April next, make PRSI contributions at Class A rate and who are members of an occuptional pension scheme: (a) no change will be made in the occupational lump sum benefits, because social insurance benefits are in pension form only; (b) the occupational pension benefits will be calculated on the basis of one eightieth of net pensionable remuneration, i.e. pensionable remuneration less twice the annual equivalent of the maximum rate of contributory old age/retirement pension payable to a single person with no dependants, per year of service; (c) the employee contribution for personal benefits will comprise 1.5 per cent of pensionable remuneration plus 3.5 per cent of net pensionable remuneration; and (d) survivor's benefits, and the employee contribution of 1.5 per cent in respect of such benefits, will be based on the former member's net pensionable remuneration.
