Dáil Éireann Debate, Wednesday - 28 April 2021
639. Deputy Jim O'Callaghan asked the Minister for Social Protection the reason former gardaí who worked in the public sector prior to April 1995 do not have entitlement to a State pension (contributory); her plans to change this rule; and if she will make a statement on the matter. [21259/21]
View answerCivil and public sector employees, recruited prior to 6 April 1995, pay social insurance contributions at modified rates under PRSI classes B, C and D. Amongst the class B contributors are permanent and pensionable civil servants and Gardaí, the class C contributors are commissioned army officers and members of the army nursing service and the class D contributors include permanent and pensionable employees in the public service other than those insured at classes B and C. All civil and public servants recruited from 6 April 1995 pay social insurance at the standard class A rate.
Prior to 6 April 1995, civil and public servants did not have access to the full range of social insurance benefits as their terms of employment protected them against the main contingencies of illness and old age, and the risk of unemployment was not considered a factor due to the nature of their employment.
Consequently, such contributors pay less in social insurance contributions in return for fewer social insurance benefits. For example, class B contributors currently pay social insurance at the rate of 0.9% on their weekly earnings up to €1,443 and 4% on weekly earnings over that amount and their employers pay a contribution of 2.01% on all employee earnings. Class B contributors are currently entitled to widow's, widower's or surviving civil partner's (contributory) pension, guardian's payment (contributory), limited occupational injuries benefits, parent's benefit and carer's benefit.
In contrast, those civil and public servants recruited from 6 April 1995 pay a class A social insurance contribution of 4% on their weekly earnings and their employers pay a contribution of 8.8% where employees’ weekly earnings are €398 or less and 11.05% where their employees’ weekly earnings exceed €398. Such contributors have access to the full range of social insurance benefits.
While the modified rates of social insurance do not give entitlement to the State pension (contributory), such contributors may, subject to a means test, qualify for the State pension (non-contributory).
I trust this clarifies the matter for the Deputy.
