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Dublin City Council PRSI debacle

  • 11-06-2023 3:01pm
    #1
    BrianD3
    Registered Users, Registered Users 2 Posts: 8,431 ✭✭✭


    DCC had 180 employees on Class A PRSI instead of Class D PRSI. A figure of 20 million euro is mentioned as being involved so it must have been going on for some time.

    I'm not sure what the implications are for the employer and employees, I'd speculate that the affected individuals may get the Class A social insurance benefits that they've paid for plus a Class D pension if they can pay the difference between Class A superannuation (3% of pensionable remuneration plus 3.5% of net pensionable remuneration) and Class D (6.5% of pensionable remuneration) Seems like a big win for the employees if that is the case.

    https://www.rte.ie/news/ireland/2023/0611/1388547-dublin-city-council/




Comments

  • #2
    doc22
    Registered Users Posts: 889 ✭✭✭doc22


    https://www.boards.ie/discussion/2058300410/dublin-city-council-prsi-debacle

    Is class A is at higher rate then D. So how would the council owe 20 million



  • #3
    Larbre34
    Registered Users, Registered Users 2 Posts: 24,308 ✭✭✭✭Larbre34


    Class D entails a higher employer contribution element, hence this shortfall.

    It won't affect the people themselves. DSP will regularise their status to what it always should have been and they will get that which they would always have been entitled.

    And so it becomes a recoupment matter between DSP and DCC and that's where it stands. These things happen, it's what audits are for, it'll be fixed and whatever systems failure caused it will be traced and closed.

    I've no doubt DCC have the cash, but in other circumstances DSP would enter into an agreement with an employer to pay additional ER contributions until its paid off and up to date.



  • #4
    Tow
    Registered Users, Registered Users 2 Posts: 7,926 ✭✭✭Tow


    Class D Employer contribution is much lower than A. DSP would be paying money back to the Corpo, well 4 years worth anyway.

    The RTE article shows the journalist does not understand start he is writing about. The issue would be with the Pension Contributions, the reality is it is probably a none issue.

    When is the money (including lost growth) Michael Noonan took in the Pension Levy going to be paid back?



  • #5
    doc22
    Registered Users Posts: 889 ✭✭✭doc22


    https://www.boards.ie/discussion/comment/120703051#Comment_120703051

    Class D is lower for both employer and employee from PRSI perspective so DSP aren't out money. I say this was found out when an employee when to claim their pension. DCC have full liability rather then DSP/DCC type pension arrangement for class A employees.



  • #6
    BrianD3
    Registered Users, Registered Users 2 Posts: 8,431 ✭✭✭BrianD3


    https://www.boards.ie/discussion/comment/120703051#Comment_120703051

    I don't know where the 20 million comes from, Anyway Class D does not have a higher employer contribution. Class D is 2.35% employer contribution whereas Class A is 8.8-11.05% employer contribution.

    If people have been paying class A PRSI thanks to an error by their employer I am not sure there is a process by which the DSP can refund all their contributions and even if there is, it may be better for them not to have them refunded if it means they get Class A benefits (such as a contributory old age pension) on top of their Class D occupational pension. That's assuming they pay the higher Class D superannuation contributions to DCC that they should have been paying all along. I bet if DCC has been deducting the wrong PRSI, it will also have been deducting the wrong superannuation



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