As PRSI is not payable on occupational pensions, I assume the question refers to the levies. The total income of medical card holders and recipients of social welfare survivor's and widow's pensions, lone parent's allowance and deserted wife's benefit allowance is exempt from the levy.
Furthermore, the 1994 budget introduced a low income exemption threshold for the levies of £173 per week or £9,000 per annum. This has been increased each year since and now stands at £207 per week (£10,750 per annum) following the last budget. The levies threshold was introduced in order to focus assistance towards those on low incomes.
The effect in the particular case outlined is not general, but is confined to those within a particular income range — those around £10,600 — who receive a pay increase which brings them over the threshold of £10,750 per annum.
The existing arrangement ensures that most pensioners on low and middle incomes are exempt from the levies.
Consequently, I have no plans to fully exempt occupational pensions from the levies, nor to introduce the amendment suggested. However, I can confirm that the general application of the levies, and in particular, the threshold for the levies, will continue to be reviewed annually in the context of the preparation of the budget.
