Dáil Éireann debate -
Wednesday, 10 Mar 1999

Vol. 502 No. 1

Written Answers. - Social Welfare Benefits.

Ivan Yates

Question:

158 Mr. Yates asked the Minister for Social, Community and Family Affairs the proposals, if any, to provide PRSI related benefits to former public service workers, including civil servants based on their PRSI contribution system; and the entitlements, if any, retired civil servants have through the social welfare code of benefits based on their PRSI contributions. [7385/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

Pay related social insurance contributions are made by employers, employees and the self-employed. The rate of PRSI contribution depends on the class of social insurance applicable which, in turn, determines the range of benefits and pensions to which contributors may, in due course, become entitled.

The majority of PRSI contributors are in the industrial, commercial and services sectors. Employees in these sectors are covered by class A social insurance and the combined employer and employee rate of PRSI is either 13 per cent or 16.5 per cent depending on the level of weekly income. Employees who pay Class A contributions are covered for all social insurance benefits and pensions, subject, of course, to meeting the contribution conditions for the individual schemes.

Employees recruited to the Civil and Public Service subsequent to 5 April 1995 pay PRSI at class A and are therefore covered for the full range of social insurance benefits. Permanent and pensionable civil servants and public servants, recruited prior to April 1995, pay PRSI at classes B and D, respectively. These contributors are covered for widow's and widower's contributory pensions, some occupational injuries benefits and orphan's contributory allowance. The range of cover provided is reflected in the combined rate of employer and employee contribution payable which is 3.25 per cent in the case of class D and 2.91 per cent in the case of class B.

The Department also provides a number of free schemes which are available to retired and other persons under certain conditions. Free travel is available to all persons in the State aged 66 or over and also to certain people with disabilities under that age. Free electricity allowance, free television licence, free natural or bottled gas and free telephone rental allowance are available to people, usually aged over 66, getting a welfare type payment, subject to certain conditions, for example, living alone. The free schemes are also available to all low income pensioners, including retired civil and public servants, who satisfy a means test.

Thus, retired civil and public servants, aged over 66, who are in receipt of a widow's or widower's contributory pension will, subject to the usual conditions, qualify for the free schemes. Alternatively, a person, aged over 66, who is not in receipt of a qualifying payment and whose means do not exceed a certain level will also qualify for the relevant free schemes.

Any extension of social insurance cover under classes B and D would require an increase in the contribution rates payable by both the employer and the employee. It is not proposed, at this stage, to extend the range of benefits provided by these PRSI classes.