S.I. No 513 of 2014


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S.I. No. 513 of 2014.

SOCIAL WELFARE (CONSOLIDATED CONTRIBUTIONS AND INSURABILITY) (AMENDMENT) (NO. 4) (RETURN OF CONTRIBUTIONS) REGULATIONS 2014

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

Sections 34 to 38A of the Social Welfare Consolidation Act 2005 make provision for the refund of PRSI contributions in certain circumstances, including—

  • refunds of PRSI contributions which have been paid in error or at the wrong rate by employers and by employees,
  • refunds of PRSI contributions paid by employees in respect of State pension (contributory) or State pension (transition) where the employee first pays PRSI contributions after a specified age,
  • refunds of PRSI contributions paid by employers in respect of certain seafarers.

Chapter 2 of Part III of the Social Welfare (Consolidated Contributions and Insurability) Regulations 1996 sets out the details of the operation of refunds of PRSI contributions in such circumstances.

Sections 7 and 16 of the Social Welfare and Pensions Act 2014 qualify the provisions contained in sections 34 to 38A of the Social Welfare Consolidation Act 2005 so as to enable social welfare overpayments and other debts owing to the Minister for Employment Affairs and Social Protection to be recovered from refunds of PRSI contributions.

Section 7 of the Social Welfare and Pensions Act 2014 provides that where an employer has a debt owning to the Minister in respect of a redundancy lump sum payment in accordance with the Redundancy Payments Act 1967 and that employer qualifies for a refund of PRSI contributions, then the debt owing to the Minister can be recovered from the PRSI refund. Section 16 of the Social Welfare and Pensions Act 2014 extends the powers of recovery of social welfare overpayments to include recovery from certain lump sum payments made by the Minister for Employment Affairs and Social Protection to that person, i.e. refunds of PRSI contributions, lump sum payments made under the Redundancy Payments Act 1967 and the Protection of Employees (Employers' Insolvency) Act 1984.

The purpose of these Regulations is to qualify the provisions contained in Chapter 2 of Part III of the Social Welfare (Consolidated Contributions and Insurability) Regulations 1996 relating to the refund of PRSI contributions in the light of sections 7 and 16 of the Social Welfare and Pensions Act 2014.

These Regulations also align the text contained in article 79 of the 1996 Consolidated Regulations, which relates to the distribution of refunds of PRSI contributions on the death of the person entitled to the refund, with the other text contained in Chapter 2 of Part III of the 1996 Consolidated Regulations so as to refer to the return of PRSI contributions rather than the refund of PRSI contributions.

Last modified:18/11/2014