Aindrias Moynihan urges Minister to resist PRSI charge on supplementary pension

Fianna Fáil TD for Cork North West, Aindrias Moynihan has urged the Minister for Social Protection to resist any proposed changes to charge PRSI on supplementary pensions, adding that it is a “real worry for people”, especially those for whom the pension is the only source of income.  

In a series of questions to the Minister in the Dáil, Deputy Moynihan commented, “As the Minister stated, the State pension is a bedrock of the system; however, there are people who, for different reasons, do not qualify for one. The draft commission report recommended that pensioners pay more PRSI, but through having the solidarity rate and by the removal of the exemption on supplementary pensions. A supplementary pension sounds like something extra. For many, it is their only source of income.

“The whole question around supplementary pensions needs to be addressed. Pat, a constituent of mine, and a number of others have written to me to outline that the supplementary pension is their only source of income. They have already paid the pension levy. Purchasing power has been reduced. What certainty can the Minister give people, especially those in receipt of supplementary pensions, that they will not see a cut to their pensions?”

The Minister responded that there is a process ongoing at the minute, adding that she was not in a position to say which recommendations the Government will accept or otherwise. The discussions will continue over the coming weeks and months. The plan is that the Government will outline its full response to the commission's recommendations by the end of March.

The Cork North West TD added: “Many of those who contacted me pointed to the fact that there was no pensioner on the Commission on Pensions. They worry about how they are going to have their say and how their voice is going to be part of the whole engagement. In the absence of pensioner representation, they see these different proposals coming forward. They are threatening proposals that they feel will reduce their only income. How does the Minister propose that their voices will be heard within the system in view of the fact that there was no pensioner on the commission?”

The Minister stated that the commission included a broad range of people and the Government will bring a recommendation forward at the end of March.