Dáil Éireann Debate, Tuesday - 19 June 2012
346 Deputy Olivia Mitchell asked the Minister for Social Protection the date on which the error in classification for PRSI and superannuation of teachers was first brought to the attention of her Department; and if she will make a statement on the matter. [29193/12]
View answerNew arrangements relating to PRSI for public and civil servants came into operation with effect from 6 April 1995. Public and civil servants who had been in employment before 6 April 1995 and continued to be so employed without a break in service were insured at the modified rate of PRSI contribution, Class D, whereas new entrants paid PRSI Class A.
Following on from the 6 April 1995 changes the Department of Education and Skills applied the incorrect rate of PRSI in certain situations. This resulted in an overpayment of PRSI contributions and an underpayment of pension contributions in respect of the teachers concerned. This Department dealt with individual cases as they arose over a number of years. Subsequently, the group affected was identified and consultation took place between officials from this Department and the Department of Education and Skills which clarified the correct PRSI class and steps were taken to rectify these records. Officials from this Department and the Department of Education and Skills are in on-going discussions to agree a satisfactory solution in this matter.
