Dáil Éireann Debate, Tuesday - 1 May 2018
101. Deputy Willie O'Dea asked the Minister for Finance the progress of the working group on the future of PRSI and the USC in respect of contribution rates and ensuring contribution classes are actuarially reviewed on an annual basis to determine the changes required to fund benchmarked increases in State pension payment rates or expansion of benefits cover; and if he will make a statement on the matter. [19123/18]
Amharc ar fhreagraFollowing a commitment I made in Budget 2018, an inter-Departmental Working Group has been established to examine and report on options for the amalgamation of USC and PRSI. The Group's Terms of Reference are as follows:
“To examine and present options for the amalgamation of PRSI and USC in a manner which seeks to address, inter alia:
(i) the need to preserve the tax base having regard to the need for certainty, equity, and ease of compliance and administration,
(ii) current and future funding challenges facing the Social Insurance Fund,
(iii) issues likely to arise from a phased implementation over a number of years of the new instrument,
(iv) simplification of the personal tax and social insurance systems, and
(v) any other relevant matters arising.
The exercise will be chaired by the Department of Finance. It should have regard to the structure and rates of personal tax and social insurance in other countries and the macroeconomic and demographic contexts in Ireland, and should be completed no later than 30 June 2018.”
In addition to the Department of Finance, the Working Group is comprised of representatives from the Department of the Taoiseach, the Department of Public Expenditure and Reform, the Department of Employment Affairs and Social Protection, the Revenue Commissioners and an external expert, Dr. Micheál Collins.
The Working Group has been holding regular meetings and I understand that work is progressing as per the Group's mandate in its Terms of Reference.
