Dáil Éireann Debate, Wednesday - 22 February 2017
142. Deputy Joan Burton asked the Minister for Social Protection if he has signed the statutory instrument to effect the changes to social welfare entitlements for councillors as referred to in the Social Welfare Bill 2017; and if he will make a statement on the matter. [8936/17]
Amharc ar fhreagraSection 10 of the Social Welfare Act 2016 provided for the exclusion of members of a local authority from the Class K PRSI charge. Previously, councillors paid PRSI at the Class K rate of 4% on their income as public office holders, provided that income exceeded €5,200 per annum. Payment of Class K by councillors was not reckonable towards establishing entitlement to social insurance pensions and benefits.
Section 10 of the Act came into effect on 1 January 2017 via the Social Welfare Act 2016 (Section 10) (Commencement) Order 2016 (S.I. No. 673 of 2016).
The Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 2) (Excepted Emoluments) Regulations 2016 (S.I. No. 671 of 2016) brought, in general, the income of members of a local authority into the Class S PRSI charge as self-employed contributors. These Regulations, which also came into effect on 1 January 2017, provided that members of a local authority would continue to pay a 4% charge on their income, but, on the basis of paying Class S, they would be now be entitled to access the same social insurance benefits available to self-employed people.
Therefore, all the necessary statutory instruments in relation to this matter have been signed.
Payment of S Class contributions provides entitlement to a range of benefits, subject to satisfying the contribution conditions for these schemes. These include state pension (contributory), widow’s, widower’s or surviving civil partner’s pension (contributory), guardian’s payment (contributory) as well as maternity benefit and adoptive benefit. Since September 2016, Class S contributors can also access the newly introduced paternity benefit.
