Dáil Éireann Debate, Tuesday - 18 April 2023
471. Deputy Jennifer Murnane O'Connor asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if consideration has been given to allowing members of the Prison Service recruited post-1995 to work a certain number of hours each week whilst retaining certain social welfare benefits, as other welfare recipients can do (details supplied); and if he will make a statement on the matter. [17975/23]
View answerSince 6 April 1995, all newly-appointed public servants became fully insured under the Social Insurance System. They pay Class A PRSI, which would entitle them to Social Insurance Benefits such as, maternity benefit, illness benefit, State Pension Contributory (SPC) and other social insurance entitlements not available to public servants paying modified PRSI (Class B, C or D). A significant number of occupational pension schemes (both private and public sector) take account of a member’s entitlement to the SPC when calculating occupational pension benefits. This is known as ‘integration’, and is also sometimes referred to as 'coordination'. It should be noted that prior to the extension to all public servants, of Class A PRSI in April 1995, as many as 39,000 public servants were always fully insured.
A public servant paying Class A PRSI will receive both an occupational pension combined with their SPC element, which is paid for by way of PRSI contributions. This part of the pension is bound by the rules and criteria as set by Department of Social Protection (DSP). An occupational supplementary pension may be payable in circumstances where the total pension package (i.e. the combined total of the public service occupational pension plus any social insurance benefits) is less than that of the pension payable to a public servant on an equivalent salary and whose pension is not integrated with the Social Insurance system and who do not have an entitlement to the SPC.
The payment of an occupational supplementary pension is subject to an individual meeting certain criteria, such as the retired public servant shall not be in paid employment and:
fails to qualify for a Social Insurance Benefit or
qualifies for a Social Insurance Benefit at a reduced rate, or at a rate less than the full rate of the SPC, and
has reached minimum pension age or is in receipt of an ill-health pension.
The following Social Insurance payments are considered when assessing an individual for an Occupational Supplementary Pension: The State Pension Contributory (SPC), Illness Benefit, Invalidity Pension, Benefit Payment for 65 Year Olds and Jobseeker’s Benefit. In order to qualify for the payment of a supplementary pension, a retired public servant must engage with the Department of Social Protection and apply for any of above mentioned benefits to which they may have an entitlement. The rules regarding qualifying for the above Social Insurance payments are a matter for the Department of Social Protection.
Where an individual, in receipt of an occupational supplementary pension, takes up employment, for example, for one day, the supplementary pension would cease for that one day and be payable for the other 4 working days in the week. This is similar to the treatment of the Jobseeker’s Benefit which is payable by Department of Social Protection.
My Department is aware that there are some issues concerning the procedures for qualifying for the payment of an Occupational Supplementary Pension. My officials are currently reviewing the processes involved to establish if there is a more efficient and streamlined approach to the procedures. However, I understand that the matter is quite complex and involves other stakeholders and there is no quick solution.
