Dáil Éireann Debate, Tuesday - 20 March 2018
989. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the reason contributions made in good faith from 2002 and 2004 towards a pension were returned and not used for the purposes of calculation of rate of pension in the case of a person (details supplied); and if she will make a statement on the matter. [12778/18]
Amharc ar fhreagraIn order to pay self employed PRSI contributions an individual must make an annual return of income to the Revenue Commissioners under the self-assessment system and must have earnings in excess of the threshold applicable in the relevant year. In the case of the person concerned, he filed the relevant returns and paid preliminary tax in respect of the years concerned; 2002 and 2004.
However, he claimed a PRSI exemption in respect of 2002 and so no PRSI was charged, while in 2004 his total reckonable income was under the limit for payment of PRSI. In both years, it should be noted that the Revenue Commissioners refunded the preliminary tax that had been paid. Given that no compulsory PRSI charges were due in either year, no additional PRSI contributions arise for inclusion in the calculation of his State Pension (Contributory) entitlement.
The Deputy may also wish to note that the person concerned is not eligible to make Voluntary Contributions for those same years, because he is considerably outside the time frame over which such an application can be accepted.
I trust this clarifies the matter for the Deputy.
