S.I. No. 253/1991 - Social Welfare (Pay-Related Benefit) Regulations, 1991.

S.I. No. 253 of 1991.

SOCIAL WELFARE (PAY-RELATED BENEFIT) REGULATIONS, 1991.

The Minister for Social Welfare, in exercise of the powers conferred on him by sections 3 , 71 and 112 of the Social Welfare (Consolidation) Act, 1981 (No. 1 of 1981 ), by section 73 of that Act (inserted by section 7 of the Social Welfare Act, 1987 (No. 2 of 1987)) and by section 76 of that Act (as amended by section 8 of the Social Welfare Act, 1984 (No. 5 of 1984) and by section 10 of the Social Welfare Act, 1987 ), hereby makes the following Regulations:—

PART I. GENERAL.

1 Short title.

1. These Regulations may be cited as the Social Welfare (Pay-Related Benefit) Regulations, 1991.

2 Interpretation.

2. In these Regulations, unless the context otherwise requires—

"the Act" means the Social Welfare (Consolidation) Act, 1981 ;

"income tax year" means a year of assessment within the meaning of the Income Tax Act, 1967 (No. 6 of 1967);

"reckonable earnings" means emoluments in respect of which employment contributions are payable at the rates specified in section 10 (1) of the Act, or those rates as modified by article 10 (2) (a) of the Social Welfare (Modifications of Insurance) Regulations, 1991 ( S.I. No. 94 of 1991 ).

3 Commencement.

3. These Regulations shall come into operation on the 7th day of October, 1991.

4 Revocations.

4. The Regulations specified in column (2) of the Schedule to these Regulations are hereby revoked to the extent specified in column (3) of that Schedule opposite the mention of those Regulations in column (2).

PART II. PAY- RELATED BENEFIT.

5 Calculation of reckonable weekly earnings.

5. Subject to the provisions of article 6 of these Regulations, the reckonable weekly earnings of a person for any income tax year shall be calculated as one-fiftieth part of the amount of his reckonable earnings for that income tax year, fractions of a pound being disregarded.

6 Pre-entry earnings credits.

6. For the purpose of calculating reckonable earnings for entitlement to pay-related benefit—

( a ) where the relevant income tax year in relation to a claim for pay-related benefit is the income tax year which precedes the date of the claimant's entry into insurance under the Act the claimant shall be credited with reckonable earnings for the relevant income tax year which shall be the equivalent of twice the amount of his reckonable earnings in the twenty-six weeks immediately following his entry into insurance,

( b ) where the relevant income tax year in relation to a claim for pay-related benefit is the income tax year in which the claimant's entry into insurance occurred, the claimant shall be credited with reckonable earnings for each complete week from the beginning of the relevant income tax year up to the date of his entry into insurance, the amount of which shall be the weekly average of his reckonable earnings during the remainder of that income tax year.

7 Estimation of amount of reckonable earnings by deciding officer or appeals officer.

7. In any case where it is not possible to ascertain the reckonable earnings of an employed contributor in an income tax year either from the Collector-General or from the employer or employers of the employed contributor, the deciding officer or the appeals officer, as the case may be, shall to the best of his information and judgement calculate or estimate the amount of the reckonable earnings of the employed contributor in the income tax year in question.

8 Determination of relevant income tax year.

8. (1) The relevant income tax year in relation to pay-related benefit payable in respect of any day of incapacity for work which forms part of a period of interruption of employment shall be the last complete income tax year before the beginning of the benefit year in which the first day of incapacity for work in the period of interruption of employment occurred.

(2) The relevant income tax year in relation to pay-related benefit payable in respect of any day of unemployment which forms part of a period of interruption of employment shall be the last complete income tax year before the beginning of the benefit year in which the first day of unemployment in the period of interruption of employment occurred.

9 Earnings limits for calculation of pay-related benefit.

9. For the purposes of section 73 of the Act the limit of reckonable weekly earnings shall be £220 and no account shall be taken of any reckonable weekly earnings in excess of that limit in calculating the weekly rate of a payment of pay-related benefit.

10 Benefit limit.

10. (1) In this article "weekly rate of flat-rate benefit" means—

( a ) the weekly rate of disability benefit payable under the Act, including any increase of that benefit payable under section 21 of the Act, or

( b ) the weekly rate of unemployment benefit payable under the Act, including any increase of that benefit payable under section 32 of the Act, or

( c ) the weekly rate of injury benefit payable under the Act, including any increase of that benefit payable under section 44 of the Act, to a person who would otherwise be entitled to disability benefit or maternity allowance under the Act.

(2) Where the weekly rate of flat-rate benefit payable to a person in respect of any period is equal to or greater than seventy-five per cent. of the amount of that person's reckonable weekly earnings for the relevant income tax year, pay-related benefit shall not be payable to that person in respect of that period.

(3) Where the sum of the weekly rate of flat-rate benefit payable to a person in respect of any period and the weekly rate of pay-related benefit which would, but for the provisions of this sub-article, be payable to that person for that period, exceeds seventy-five per cent. of that person's reckonable weekly earnings for the relevant income tax year, the weekly rate of pay-related benefit payable shall be the amount by which seventy-five per cent of the said reckonable weekly earnings exceeds the weekly rate of flat-rate benefit payable in respect of that period.

(4) Where, immediately before the commencement of these Regulations, the aggregate of—

( a ) weekly rate of unemployment benefit, including any increase of that benefit payable under section 32 of the Act, and

( b ) the weekly rate of pay-related benefit payable, and

( c ) the weekly equivalent, as determined by the Revenue Commissioners, of the refund of income tax, if any, which is paid as a result of the unemployment,

payable to a person exceeds seventy-five per cent. of the amount of that person's reckonable weekly earnings for the relevant income tax year, sub-article (2) of this article shall not operate so as to reduce the total amount payable to such person by way of the said unemployment benefit, pay-related benefit and refund of income tax.

(5) Sub-article (4) of this article shall cease to apply to a person who ceases to be entitled to pay-related benefit on or after the commencement of these Regulations.

11 Rounding of pay-related benefit.

11. The weekly rates of pay-related benefit or the appropriate amount of such weekly rate payable in respect of a period less than a week shall be rounded up to the nearest 10p where it is a multiple of 5p but not also a multiple of 10p and shall be rounded to the nearest 10p where it is not a multiple of 5p or 10p.

PART III. LUMP SUM PAYMENTS FOR PERSONS PARTICIPATING IN ENTERPRISE ALLOWANCE SCHEME.

12 Lump sum payment of pay-related benefit for persons participating in the Enterprise Allowance Scheme.

12. For the purposes of a scheme administered by An Foras Áiseanna Saothair and known as the Enterprise Allowance Scheme, a person accepted into that Scheme who, if he had continued to be unemployed, would be entitled to continue to receive pay-related benefit, shall be entitled, subject to articles 13 and 14 of these Regulations, to receive such benefit in the form of a lump sum equivalent to the amount which he would otherwise have received in respect of the unexpired portion (subject to a maximum of 26 weeks) of the relevant period of interruption of employment.

13 Application for lump sum payment of pay-related benefit.

13. (1) Where, in the case of a person who has been accepted into the Enterprise Allowance Scheme—

( a ) it has been determined by An Foras Áiseanna Saothair that the case is a suitable case for the payment of a lump sum under article 12 of these Regulations, and

( b ) An Foras Áiseanna Saothair has determined an amount which it considers appropriate as such a lump sum in respect of the relevant enterprise,

The person may apply for payment of such a lump sum.

(2) An application under sub-article (1) of this article may be made initially through An Foras Áiseanna Saothair, when application is being made to that body for the determination of the matters referred to in paragraphs (a) and (b) of the said sub-article (1).

14 Period of payment.

14. (1) Subject to sub-article (2) of this article, the period in respect of which a person may receive a lump sum payment of pay-related benefit under this Part of these Regulations shall commence on the day on which he is accepted into the Enterprise Allowance Scheme and shall end on a day not later than the last day of the benefit period appropriate to the lump sum, any part of a day being disregarded.

(2) Where payment of pay-related benefit in respect of incapacity for work has been made to a person in respect of any period after the date he is accepted into the Enterprise Allowance Scheme, the period covered by such payment shall not, for the purposes of sub-article (1) of this article, reckon as a period in respect of which such person may receive a lump sum payment of pay-related benefit under this Part of the Regulations.

15 Method of payment.

15. (1) Lump sum payment of pay-related benefit under this Part of these Regulations shall be transferred by the Department of Social Welfare to An Foras Áiseanna Saothair for payment by that body to the person entitled thereto.

(2) A certificate from An Foras Áiseanna Saothair that the amount of a payment referred to in sub-article (1) of this article has been made to a person who is entitled to such payment under this Part of these Regulations shall represent a proper discharge to the Social Insurance Fund for the amount so paid.

16 Limitation of pay-related benefit.

16. Notwithstanding the provisions of section 72 of the Act, where a person has received payment of pay-related benefit in the form of a lump sum under this Part of these Regulations, he shall not be entitled to a further payment of pay-related benefit in respect of—

( a ) any day of incapacity for work which forms part of a period of interruption of employment in respect of which the person is entitled to disability benefit, or be so entitled but for the fact that injury benefit is payable under Chapter 5 of Part II of the Act, in respect of any period which coincides with any period in respect of which payment of pay-related benefit by way of lump sum has already been made,

( b ) a period of interruption of employment in respect of such number of days for which he is entitled to unemployment benefit by virtue of subsections (4) (c) and (4A) of section 29 of the Act, and which are treated as part of one period of interruption of employment, as is equal to the number of days in respect of which payment of pay-related benefit by way of lump sum has already been made.

17 Commencement of lump sum payments.

17. Lump sum payments of pay-related benefit under this Part of the Regulations shall be payable only in respect of enterprises which commence on or after the 13th day of August, 1984.

SCHEDULE

Article 4

Regulations Revoked

GIVEN under the Official Seal of the Minister for Social Welfare this

30th day of September, 1991.

 MICHAEL WOODS,

Minister for Social Welfare.

The Minister for Finance hereby consents to the making of the foregoing Regulations.

GIVEN under the Official Seal of the Minister for Finance this 30th

day of September, 1991.

ALBERT REYNOLDS,

Minister for Finance.

EXPLANATORY NOTE.

These Regulations provide for the standardisation of the benefit limits for pay-related benefit payable with disability and unemployment benefits. The limit on pay-related benefit payable with disability benefit of 75 per cent of reckonable earnings will in future apply, in place of the existing limit, for pay-related benefit payable with unemployment benefit. The limit only applies where pay-related benefit is payable and cannot operate to reduce the amount of the flat-rate benefit in any case.

The Regulations also consolidate all of the existing provisions relating to pay-related benefit.