Pension Provisions

Dáil Éireann Debate, Tuesday - 18 April 2023

Tuesday, 18 April 2023

Questions (947)

Gerald Nash

Question:

947. Deputy Ged Nash asked the Minister for Social Protection her Department's views on correspondence (details supplied) which relates to the application of change of status PRSI credits which relate to former public servants who transition to private sector self-employment during their career; if she is concerned at any disadvantage that arises from a pension perspective for workers in this category; if she plans to review the position; and if she will make a statement on the matter. [18191/23]

Written answers

Minister for Social Protection

Credited contributions, including change of status credits, are not applicable in the case of self-employed Class S contributors, such as the person referred to by the Deputy. 

Class S contributions are set at a significantly lower rate than that paid in respect of the vast majority of employees and their employers, under Class A.  Providing reckonable income is €5,000 per annum, the Class S contribution rate is 4% with a minimum charge of €500.  This compares with a combined PRSI rate of 15.05% for employees.

Consideration of the provision of Class S credits (and any other extension of benefits) in the future could only be considered in light of the significant cost implications and the current rate of Class S PRSI contributions payable.

I trust this clarifies the matter for the Deputy.