S.I. No. 133/2001 - Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 3) (Refunds) Regulations, 2001

The Minister for Social, Community and Family Affairs, in exercise of the powers conferred on him by sections 4 (as amended by section 17 of the Social Welfare Act, 2000 (No. 4 of 2000)) and 29B (inserted by section 23 of the Social Welfare Act, 2000 ) of the Social Welfare (Consolidation) Act, 1993 (No. 27 of 1993), hereby makes the following Regulations:-

Citation and construction.

1. (1) These Regulations may be cited as the Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 3) (Refunds) Regulations, 2001.

(2) These Regulations and the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 to 2001 shall be construed together as one and may be cited as the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 to 2001.

Definitions.

2. In these Regulations, “the Principal Regulations” means the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 ( S.I. No. 312 of 1996 ).

Refund of contributions.

3. The Principal Regulations are amended by the insertion after article 72A of the following article:

“Refund of contribution - maintenance arrangements.

72B. (1) In this article -

‘aggregate income’ means the aggregate of a person's reckonable earnings, reckonable income and reckonable emoluments;

‘contribution’ means an employment contribution, self-employment contribution, or voluntary contribution (payable in accordance with section 22), or any combination of such contributions, payable by an insured person;

‘maintenance’ means a payment made under or pursuant to a maintenance arrangement within the meaning of section 1025 of the Taxes Consolidation Act, 1997 (No. 39 of 1997) relating to marriage for the benefit of the other party to the marriage, unless section 1026 of that Act applies in respect of such a payment;

‘reckonable income’ in relation to a self-employed contributor has the meaning assigned in section 2(2) and in relation to a voluntary contributor has the meaning assigned in section 22(1) (d).

(2) Subject to these Regulations where in any contribution year commencing on or after the 6th day of April, 2000, a contribution is paid by an insured person and that person has also paid maintenance in that contribution year, an amount, calculated in accordance with sub-article (3), of such contribution as was paid in respect of that portion of the insured person's aggregate income which was paid in maintenance, may be returned to him or her if application to that effect is made in writing to the Minister within such time as he may determine.

(3) Subject to sub-article (4), the amount of contribution to be returned under sub-article (2) shall be determined as follows:

(a) where the insured person's aggregate income in that contribution year is less than or equal to the amount specified in section 10 (1) (c), the amount of contribution to be returned shall be calculated in accordance with the formula:

M × R, or

(b) where the person's aggregate income exceeds the amount specified in section 10(1) (c) but when reduced by the amount of maintenance paid is less than the amount specified in section 10 (1) (c), the amount of contribution to be returned shall be calculated in accordance with the formula:

(C- (A-M)) × R

where -

A is the aggregate income,

C is the amount specified in section 10 (1) (c),

M is the amount of maintenance paid, and

R is

(i) the highest rate of contribution paid by the insured person, or

(ii) in the event of the amount of maintenance paid exceeding the amount of reckonable earnings, reckonable income or reckonable emoluments to which the highest rate of contribution applied in that contribution year, the next highest rate of contribution paid in descending order.

(4) Notwithstanding sub-articles

(2) or (3) where -

(a) a person's aggregate income when reduced by the amount of maintenance paid is greater than the amount specified in section 10 (1) (c), no contribution shall be returned, and

(b) the return of contribution would have the effect of reducing that person's voluntary, self-employment or optional contribution below the minimum amount of contribution applicable in his or her case, the amount of contribution to be returned shall be the difference between the minimum rate applicable and the amount calculated in accordance with sub-article (3).

(5) Where an amount of self-employment contribution is to be returned in accordance with sub-article (3) to a self-employed contributor who is also an optional contributor an equal amount of optional contribution shall be returned.”.

	GIVEN under the Official Seal of the Minister for Social, Community and Family Affairs, this 5th day of April, 2001.
	DERMOT AHERN
	Minister for Social, Community and Family Affairs.

EXPLANATORY NOTE

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

Where a separated person makes an enforceable maintenance payment, PRSI is levied at the point at which it is earned as part of the person's earnings/ income and also as income in the hands of the receiving spouse. Section 23 of the Social Welfare Act, 2000 provided for the return of social insurance contributions in certain circumstances to the maintenance payor.

These Regulations outline the circumstances in which a return of contributions is made in such cases and the basis for calculating the amount of PRSI contribution to be returned.

Article 79B (2) provides that, subject to sub-article (3), where a person makes application in writing to the Minister such contribution or contributions as were paid on that part of a person's income which was paid in maintenance shall be returned.

Article 79B (3) (a) provides that where an insured person's aggregate income from all sources is less than or equal to the employee ceiling, then any contribution paid on the amount of maintenance shall be returned.

Paragraph (b) of that article deals with cases where the insured person's aggregate income from all sources exceeds the employee ceiling but when reduced by the amount of maintenance paid is less than the ceiling. In such cases, the amount to be returned will be the amount of contributions paid on the difference between his or her aggregate income less the maintenance and employee ceiling.

The rate at which the return will be calculated will be the rate at which the contribution was paid. In cases where more than one type of contribution was paid, the return will be calculated by reference to the highest rate first and by reference to other rates in descending order if necessary.

Article 79B (4) (a) provides that in cases where a person's total income when reduced by the amount of maintenance exceeds the employee ceiling, no return shall be made. Paragraph (b) provides that any return to be made shall be reduced if necessary to ensure that the appropriate minimum contribution is paid in the case of self-employed or voluntary contributors.

Sub-article (5) provides that where a self-employment contribution is returned to a person who is also an optional contributor, an equal amount will be returned in respect of the optional contribution.