Dáil Éireann Debate, Tuesday - 30 January 2018
599. Deputy Michael McGrath asked the Minister for Employment Affairs and Social Protection to outline her plans to recognise the plight of persons that were paying a public service stamp for a significant part of their career and not allowed to pay a class A stamp and therefore end up with no State pension (contributory) or a modest pro rata mixed insurance pension; and if she will make a statement on the matter. [4223/18]
Amharc ar fhreagraEmployees and their employers, are liable to pay PRSI based on employee earnings. Private sector employees and public sector employees who commenced employment on or after 6 April 1995, are liable to pay Class A PRSI contributions. Class A employees pay PRSI at the rate of 4% and have access to the full range of benefits including State pension (contributory). Their employer is liable to pay 8.6% or 10.85%, depending on the level of weekly earnings.
Public sector employees recruited prior to 6 April 1995 are insurable at PRSI classes B, C, or D and are liable to a reduced or modified rate of PRSI contribution. These employees pay a lower employee PRSI contribution rate of 0.9%. Their employer also pays a lower employer contribution of 2.01%, 1.85% and 2.35% for classes B, C and D respectively. Based on their significantly lower contribution rates, these modified rate contributors can access a more limited range of entitlements, such as widow’s/er’s or surviving civil partner’s contributory pension. While these modified rate of contributors do not qualify for the State pension (contributory), they are entitled to receive an occupational pension from their employer, which is funded by the State.
Individuals with both modified rate contributions and full class A contributions may qualify for a mixed insurance pro-rata State pension (contributory). If the level of their occupational pension is such that they have insufficient means, they may apply for the means-tested State pension (non-contributory).
I trust this clarifies the matter.
