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Social Insurance

Dáil Éireann Debate, Tuesday - 16 January 2018

Tuesday, 16 January 2018

Questions (1661)

Robert Troy

Question:

1661. Deputy Robert Troy asked the Minister for Employment Affairs and Social Protection the estimated cost of backdating to 1973 social insurance coverage for members of religious orders who were excluded prior to the introduction of the Social Welfare (Insurance Inclusions and Exclusions) Regulations, 1988; and if she will make a statement on the matter. [1704/18]

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Written answers

Clergy and other religious were excluded from Social Insurance on its introduction. In 1974, however, the Social Welfare Act made provision that ministers of religion engaged solely on pastoral works for which remuneration was received, could be admitted to social insurance on the application of the appropriate representative body or authority. This access was subject to an application to (and the agreement of) the then Minister for Social Welfare by an appropriate authority or body acting on behalf of the relevant ministers representing to him or her that the services performed and conditions of appointment were analogous to other occupations which were already covered for social insurance purposes. The provisions of the 1974 Act meant that all religious authorities or bodies had, if they so wished, the opportunity to apply for social insurance access for their employed members and, therefore, did not discriminate in any way against or in favour of any particular congregations.

Only the Church of Ireland availed of this provision. The position for other Ministers of Religion, including those employed as teachers or nurses and remunerated as such, were not covered by social insurance.

In 1986, the Commission on Social Welfare published a range of proposals aimed at developing and enhancing the structure and operation of the social insurance system.

The exclusion of clergy and other religious denominations from social insurance coverage was examined and in this context, it was not considered appropriate to continue to exclude from the system those who are employed in what might be termed secular employment as employees under a contract of service. The categories involved were religious who are mainly employed in schools, hospitals and other institutions. They came within the social protection system as employees, insurable at the ordinary or modified rate, as appropriate to their particular circumstances from 1988. The effect of this is that clergy and people of other religious denominations who are employed in public or private sector employment – i.e. in schools, hospitals and other public/social institutions – are afforded the same level of coverage as other employees in those sectors and generally insurable at PRSI Class A or D, as appropriate. Those involved in pastoral care only are generally insured as self-employed workers provided they meet the minimum income threshold.

Social insurance contributions (Class S PRSI) were introduced for self-employed people on 6th April 1988. These contributions currently provide cover for self-employed people for benefits such as State pension (contributory), widows/widowers or surviving civil partner’s pension (contributory), guardian’s payment (contributory), maternity benefit, adoptive benefit, paternity benefit, and treatment benefit. Entitlement to invalidity pension was extended to the self-employed from December 2017.

It is not possible to cost the backdating of social insurance to the members of religious orders because of various unknown factors, for example, the various contingencies that could have arisen for those members in the intervening period, the question of whether any such backdating should be at the higher or lower rates of payment and the recoupment of contributions for the period in question.

The PRSI system is based on “weeks of insurable employment” - in terms of both the calculation of PRSI contributions and the award of social insurance contributions. These contributions are recorded to determine future entitlements to social welfare benefits. This link between contributions awarded and entitlement to benefit is referred to as the contributory principle. In order to qualify for a social insurance benefit the insured person must have built up an entitlement through the payment of social insurance contributions. As such, there are no plans to backdate social insurance benefits to those who were excluded from social insurance in the past.

I trust this clarifies the matter for the Deputy.

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