Social Insurance Refunds

Dáil Éireann Debate, Thursday - 12 March 2015

Thursday, 12 March 2015

Questions (79, 80, 81, 82, 83, 84)

Michael McGrath

Question:

79. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection the total figures for refunds currently due to public sector employees where the Statute of Limitations will apply for PRSI class payments which were incorrectly charged on their declared self-employment income, and which should have been excluded, on the basis that they had paid class B, C, or D PRSI classes, as provided for under Part III of the First Schedule of the Social Welfare Consolidation Act 2005; the number of employees affected; and if she will make a statement on the matter. [11034/15]

Michael McGrath

Question:

80. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection the total amount for PRSI class S contributions which were incorrectly charged to the self-employment income of public sector workers who had paid classes B, C, D PRSI contributions on their State incomes for the period 1990 to 2014; and if she will make a statement on the matter. [11035/15]

Michael McGrath

Question:

81. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection the rationale for disregarding class S PRSI contributions for public sector workers, when determining their eligibility for the State pension in the years in which they had paid classes B, C, or D PRSI contributions; and if she will make a statement on the matter. [11037/15]

Michael McGrath

Question:

82. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection the length of time there has been a requirement to pay class S PRSI contributions on self-employment income; and if she will make a statement on the matter. [11038/15]

Michael McGrath

Question:

83. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection her plans to automatically refund public sector workers, overcharged Pay Related Social Insurance, or build an awareness as to their availability; and if she will make a statement on the matter. [11039/15]

Michael McGrath

Question:

84. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection her plans to extend the period for public sector workers to claim refund of PRSI in view of the lack of information surrounding such refunds and the sizeable overcharging that has occurred over a long period; and if she will make a statement on the matter. [11040/15]

Written answers

Tánaiste and Minister for Social Protection

I propose to take Questions Nos. 79 to 84, inclusive, together.

Permanent and pensionable employees in the civil and public service recruited before April, 1995, are liable to pay social insurance contributions at the lower modified rates applying to PRSI classes B, C and D. Class B covers civil servants, registered doctors and dentists employed in the civil service and Gardaí. Class C covers commissioned officers of the Defence Forces and members of the Army Nursing Service. Class D covers employees in the public service other than those mentioned in class B and C.

Subject to having the required number of PRSI contributions, employees who pay modified contributions have access to the following payments:

(a) widow's/widower's (contributory) pension and surviving civil partner’s (contributory) pension;

(b) guardians payment (contributory) and;

(c) carer's benefit.

The payment of PRSI on self-employed income was introduced in 1988 when self-employed workers were brought into social insurance for the first time. As modified rate contributors already benefit from an occupational pension which is funded by the State, they are excepted self-employed contributors in accordance with Schedule 1, Part 3, paragraph 5 of the Social Welfare Consolidation Act 2005.

The obligation to return income, including self-employed income, at the correct PRSI rate rests with the individual. In cases where PRSI was incorrectly paid, a refund, subject to the four year rule, may be claimed. I do not propose to automatically refund public sector workers who incorrectly paid PRSI or to extend the period for public sector workers to claim a refund of PRSI. The provision in relation to the four year limit on the return of PRSI contributions was introduced in the Social Welfare and Pensions (No. 2) Act 2009 and has been in effect since 1 January 2010. The time limit governing the refund of PRSI contributions is in line with the arrangements of the Revenue Commissioners governing the refund of tax.

It may not be possible to provide all the figures sought by the Deputy. My Department is currently compiling the figures that are available and will provide these to the Deputy as soon as possible.