Dáil Éireann díospóireacht -
Wednesday, 9 Jul 1997

Vol. 480 No. 2

Written Answers. - PRSI Allowances.

Noel Ahern

Ceist:

149 Mr. N. Ahern asked the Minister for Finance the PRSI payments and levies paid by serving civil servants and retired civil servants; the amounts collected under each heading in respect of retired staff; the justification for these collections; the plans, if any, there are to cease collection in this regard. [13459/97]

Minister for Finance (Mr. McCreevy)

(a) Levies are at the rates of 1.25 per cent (Health) and 1 per cent (Employment and Training).

The combined rates of PRSI and levies currently payable are as follows:

(i) Permanent and pensionable Civil Servants recruited from 6 April, 1995.

			Earnings	Ceilings
Weekly earnings thresholds	PRSI Class	Weekly Earnings	Up to £23,200	£23,200 to £27,900
£30 – £197	AO	1st £80	Nil	Nil
		Balance	4.5%	Nil
£197.01 – £260	AX	1st £80	2.25%	2.25%
		Balance	6.75%	2.25%
	AW*	1st £80	Nil	Nil
		Balance	4.5%	Nil
In excess of £260	A1	1st £80	2.25%	2.25%
		Balance	6.75%	2.25%
	A2*	1st £80	Nil	Nil
		Balance	4.5%	Nil

*Holders of medical cards, social welfare widow(er)s pensions, one parent family payment, deserted wife's benefit-allowance.

(ii) Permanent and pensionable Civil Servants recruited prior to 6 April 1995.

			Earnings	Ceilings
Weekly earnings thresholds	PRSI Class	Weekly Earnings	Up to £23,200	£23,200 to £27,900
Up to £197	BO	1st £20	Nil
		Balance	0.90%
Over £197	B1	1st £20	2.25%	2.25%
		Balance	3.15%	2.25%
Over £197	B2*	1st £20	Nil	Nil
		Balance	0.90%	Nil

*Holders of medical cards, social welfare widow(er)s pensions, one parent family payment, deserted wife's benefit-allowance.

(iii) Retired Civil Servants

			Earnings	Ceilings
Weekly earnings thresholds	PRSI Class	Weekly Earnings	Up to £23,200	£23,200 to £27,900
Up to £197	M	All	Nil	Nil
In excess of £197	K1	All	2.25%	2.25%

(b) Amounts collected in respect of retired Civil Servants for the year ending 5 April 1997 were: PRSI, Nil; Levies, £1,073,943.75.

(c) The Health levy contributes to the cost of the health services generally, from which retired Civil Servants are entitled to benefit. The employment and training levy helps to fund employment and training programmes generally including the activities of FÁS, CERT and certain programmes run by the Department of Education.

(d) The threshold at which levies are paid has been substantially raised in recent years and the situation will be kept under review in the preparation of future budgets.