asked the Minister for Finance the reason persons in receipt of old age pensions have to make PRSI payments on their old age pensions from a private source, in view of the fact that they can obtain no benefits from same; and if he has any proposals to amend this situation.
Written Answers. - PRSI Contributions.
122.
Occupational pensions which are assessable to PAYE are only subject to the class K rate of PRSI contribution. The class K rate of PRSI contribution, which is currently fixed at 2.25 per cent does not include any element in respect of social insurance but is made up of the 1.25 per cent health contribution and the 1 per cent employment and training levy. If, however, the person in receipt of the occupational pension is a medical card holder there is no PRSI contribution liability.
The income from the health contribution and the employment and training levy is used by the Department of Health and the Department of Labour respectively for the purposes of financing the services provided by those Departments.