An initiative to allow local councillors to access social welfare benefits has been brought forward by Minister for Social Protection Leo Varadkar.
He has tabled an amendment to the Social Welfare Bill 2016, and expects the change to come into effect in January.
Councillors, who earn a basic salary of €16,700 plus expenses, will move from paying 4 per cent PRSI at class K to class S, the same as the self-employed. As a result they will be entitled to a State contributory pension, widow, widower or surviving civil partner pension, maternity adoptive benefit and paternity benefit.
The Bill, currently at Committee Stage in the Dáil, also increases the entitlements of self-employed people to some other benefits, and these will also be extended to councillors.
In a letter to Senator Paul Coghlan, leas-cathaoirleach of the Seanad, Mr Varadkar said in March next year the treatment benefit scheme for dental, optical and hearing treatments will be extended to the self-employed. They will also be able to access an invalidity pension from December next year. Councillors will benefit from both extensions.
Option
Mr Varadkar said he considered an “opt-in, opt-out arrangement” so that councillors could opt not to pay any PRSI, but he decided against it as no other self-employed person is given such an option.
He also said local authorities would not be required to pay employers’ PRSI on behalf of councillors so the change would “have no impact on local authority budgets”.
“This brings to an end the profoundly unfair position since 2011 whereby local authority members paid PRSI but in return received no benefits,” the Minister said.
