Social Welfare (Consolidated Contributions and Insurability) (Amendment) (Refunds) Regulations, 2002
Statutory Instruments
Source: Statutory Instruments

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paragraphs: (1) These Regulations may be cited as the Social Welfare (Consolidated Contributions and Insurability) (Amendment) (Refunds) Regulations, 2002.
(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 2002.
Definitions.
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paragraphs: 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.
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paragraphs: The Principal Regulations are amended by substituting the following for article 72B (inserted by article 3 of the Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 3) (Refunds) Regulations, 2001 ( S.I. No. 133 of 2001 ) ) :
“Refund of contribution - maintenance arrangmements.
72B. (1) In this article -
‘aggregate income’ in relation to an insured person means his or her reckonable earnings or reckonable income within the meaning of section 22 (1) (d) or the aggregate of both;
‘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 or an optional contributor has the meaning assigned in section 2 (1).
(2) Subject to these Regulations where in any contribution year commencing on or after the 6th day of April, 2001, an employment contribution, self-employment contribution, optional contribution or voluntary contribution is paid by an insured person and that person has also paid maintenance in that contribution year, an amount, calculated in accordance with this article, of such contribution as was paid in respect of that portion of the insured person's 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 or she may determine.
(3) Subject to sub-article (5), in the case of an employed contributor or a voluntary contributor the amount of contribution to be returned under sub-article (2) shall be determined as follows:
(a) where an 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 an insured person's aggregate income in that contribution year 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 in that contribution year, 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) Subject to sub-article (5) in the case of a self-employed contributor the amount of contribution to be returned under sub-article (2) shall be determined in accordance with the formula:
M × R
where
M is the amount of maintenance paid, and
R is the rate of contribution paid by the insured person in that contribution year.
(5) In the case of an insured person who, in the contribution year in which the maintenance is paid, is both an employed contributor and a self-employed contributor, the amount of contribution to be returned shall be determined -
(a) in accordance with sub-article (3), and
(b) in accordance with the formula:
M × R
where -
M is the amount of maintenance, if any, in respect of which a return is not due under sub-article (3), and
R is the rate of self-employment contribution paid by that person in that contribution year.
(6) In the case of an optional contributor the amount of contribution to be returned under sub-article (2) shall be determined as follows:
(a) where an optional contributor's reckonable 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 an optional contributor's reckonable income in that contribution year 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 reckonable income
C is the amount specified in section 10 (1) (c),
M is the amount of maintenance paid,
R is the rate of optional contribution paid by that person in that contribution year, and.
(7) (a) Notwithstanding sub-articles (3), (5) (a) or (6) where an employed contributor's aggregate income or an optional contributor's reckonable income when reduced by the amount of maintenance paid is greater than the amount specified in section 10 (1) (c), no employment contribution voluntary contribution or optional contribution shall be returned.
(b) Notwithstanding sub-articles (3), (4), (5) (b) or (6), where the return of a 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 the said sub-articles.”.
GIVEN under the Official Seal of the Minister for Social, Community and Family Affairs, this 5th day of June, 2002.
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 payer.
The Social Welfare (Consolidated Contributions and Insurability (Amendment) (No. 3) (Refunds) Regulations, 2001 outlines the circumstances in which a return of contributions is made and the basis for calculating the amount of PRSI contribution to be returned. This Regulation substitutes those provisions to provide for changes consequent on the removal of the PRSI ceiling for the self-employed.
The Regulations provide that the refund due to a self-employed person who pays maintenance will be the amount of maintenance multiplied by the rate of self-employment PRSI (Class S) paid. In the case of a person who, in the contribution year in question, is both an employed contributor and a self-employed contributor, the amount of refund due will firstly be calculated in respect of his or her reckonable earnings as an employed contributor and subject to the employee PRSI ceiling and any balance will be refunded at the self-employed rate.