Dáil Éireann Debate, Thursday - 1 June 2023
238. Deputy Michael Healy-Rae asked the Minister for Social Protection if her Department has plans to assist people who paid class D contributions in the public sector (details supplied); and if she will make a statement on the matter. [26951/23]
View answerMatters relating to the pension entitlements of public servants generally are not the responsibility of my Department and are a matter for the Minister for Public Expenditure, NDP Delivery and Reform.
To qualify for the State Pension (Contributory), a person must have entered the social insurance system before their 56th birthday and have paid a minimum of 520 qualifying contributions. Contributions paid at Classes B, C or D, i.e., those made by public servants recruited before 6 April 1995, are not qualifying contributions. Only those who have the minimum of 520 paid contributions may avail of PRSI credits or homecaring periods to enhance the rate at which they are paid the State Pension (Contributory).
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 D contributors currently pay a contribution 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 2.35% on all employee earnings.
In contrast, class A contributors pay a contribution of 4% on their weekly earnings and their employers pay a contribution of 8.8% where employees’ weekly earnings are €441 or less and 11.05% where their employees’ weekly earnings exceed €441. Class A 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). Entitlement to the State Pension (Non-Contributory) may entitle recipients to access other secondary benefits (subject to any other criteria).
I trust this clarifies the matter for the Deputy.
