department of social and family affairs annual report 2006 - Welfare.ie

goal 4: coverage, access and entitlement
To ensure that the range and level of social security coverage is appropriate to the
social and economic circumstances of different groups, that the services for which
people are eligible are readily accessible and delivered in an efficient, effective
and integrated way, through direct provision to our customers and by supporting
agencies in providing services to our customers
> OBJECTIVE 1
Ensure that the coverage of the Pay Related
Social Insurance (PRSI) system is appropriate to
the respective circumstances of employed, self
employed and other categories.
> The Social Insurance Fund
coverage for Volunteer Development Workers
and missionaries with a view to improving their
access to contributory pensions. The outcome of
the Group’s considerations will be considered by
the Oireachtas Committee
> Tax relief for Child-minders – see
Goal 3, objective 2.
goal 4: coverage, access and entitlement
The surplus in the Social Insurance Fund in 2006
was €669m (provisional outturn) leading to a
cumulative surplus of some €3 billion at the end
of 2006.
> Policy Developments
There is a requirement to undertake an actuarial
review of the financial condition of the Social
Insurance Fund at five-year intervals. The first
Actuarial Review was published in October, 2002,
and reflected the position of the Social Insurance
Fund at the end of 2000.
Arrangements were put in place in 2006 for a
further review of the Fund as at 2005. This Review
will predict the income of the Fund (including the
accumulated surplus) as well as the contributory
pensions and benefits paid from the Fund
– including non‐cash benefits (household benefits
package) and other payments (redundancy and
insolvency payments). The period covered by this
Review will be 55 years (from 2006 to 2061). It is
expected that the final Report will be published
during the summer of 2007.
> Pensions for Missionaries /
Volunteer Development Workers:
Officials contributed to a Working Group
established under the Joint Committee on Foreign
Affairs to examine issues relating to pension
> Other PRSI developments
(1) The annual earnings ceiling was increased by
€2,420 from €44,180 to €46,600 with effect
from 1 January, 2006, reflecting the normal
indexation designed to maintain the real value of
the ceiling.
(2) The PRSI exemption on low earnings was
increased from €287 to €300 per week.
(3) The weekly Health Contribution threshold was
raised by €40 from €400 to €440 per week or
€22,880 p.a.
> PRSI Exemptions reviewed
A review of PRSI exemptions for workers
employed temporarily in the state was initiated in
2005. During 2006 stakeholders with an interest
in the review were invited to make submissions
on the issue. The future of the PRSI exemption
scheme was also considered in the context of the
new regime to apply to employment permits and
developments in relation to immigration policy
generally. Recommendations will be brought
forward in the light of these developments.
> Bilateral agreement
Work continued in 2006 towards ratifying the
revised agreement with the UK, providing for
workers moving between Ireland, the Isle of Man
and the Channel Islands with a view to bringing it
into effect in 2007.
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