Dáil Éireann Debate, Thursday - 14 January 2016
39. Deputy Michael McCarthy asked the Tánaiste and Minister for Social Protection the changes to the voluntary contributions system introduced since 2011; how a person can opt to make these contributions; why a person (details supplied) in County Cork was refused this facility; and if she will now allow a payment to be made. [1595/16]
Amharc ar fhreagraA person on ceasing to be employed or self-employed can opt to become a voluntary contributor by submitting an application to the Department. The application has to be submitted within one year of the end of the tax year in which the person last worked and the person is required to make an annual payment of the contribution within prescribed time limits.
Two changes have been made to the scheme since 2011. The number of PRSI contributions a person is required to have paid before being admitted to the scheme increased from 260 to 520 on an incremental basis between 2013 and 2015 and the minimum rate of the contribution increased to €500 per annum from 1 January 2013.
The person concerned applied to become a voluntary contributor on 12 November 2012. Her application was accepted and she paid the contribution for the 2011 tax year within the prescribed time. The Department issued a bill in April 2013 in respect of the voluntary contribution due for the 2012 tax year, which was required to be paid by 31 December 2013. However, as this person failed to pay voluntary contributions for 2012 within the prescribed time limit her application to continue to make voluntary contributions lapsed and is no longer valid.
