S.I. No. 698/2003 - Social Welfare (Consolidated Contributions and Insurability (Amendment) (No. 1) (Refunds) Regulations, 2003

“Refund of contribution - payments to personal pensions.

72C.   (1)    Section 91 of the Pensions Act, 1990 (No. 25 of 1990) is prescribed for the purpose of section 29C (2).

(2)   In this article -

‘pension payment’ means a payment specified in Section 29C in respect of any contribution year commencing on or after 1 January, 2003.

‘allowable pension payment’ in relation to a contribution year and an insured person, means the amount of a pension payment made by the insured person on or after January 1, 2003, to the extent to which, as the case may be -

(a) it is, by virtue of section 774 or 776 of the Taxes Consolidation Act 1997 (No. 39 of 1997), allowed as a deduction from emoluments for the purposes of an assessment to income tax on the insured person under Schedule E of the Income Tax Acts for the year of assessment corresponding to the contribution year, or

(b) it is, by virtue of section 787 or 787C (inserted by the Pensions (Amendment) Act 2002 ) of the Taxes Consolidation Act 1997 deducted from or set off against the relevant earnings, within the meaning of section 787 or 787B (as so inserted) of that Act, as is appropriate in the circumstances, of the insured person for the year of assessment which corresponds to the contribution year,

other than an amount of a pension payment to which Regulations 41 and 42 of the Income Tax (Employments) (Consolidated) Regulations, 2001 ( S.I. No. 559 of 2001 ) applies.

(3)  Subject to these Regulations where in any contribution year commencing on or after 1 January 2002, an employment contribution under section 10 (1) (b) or a self-employment contribution under section 18(1) (c) is paid by an insured person and that person has also made a pension payment, such amount of contribution, if any, as is determined in accordance with this article, may be returned to that person by the Minister or the Collector-General, as the case may require, if application to that effect is made in writing to the Minister or the Collector-General, as appropriate, within such time as he or she may determine.

(4)  Subject to sub-article (6) in the case of an employed contributor the amount of contribution to be returned for a particular contribution year under sub-article (3) shall be determined as follows:

(a)  where an insured person's reckonable earnings in that contribution year are 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:

P × R, or

(b)  where an insured person's reckonable earnings in that contribution year exceed the amount specified in section 10 (1) (c) but when reduced by the amount of allowable pension payment is less than the amount specified in section 10 (1) (c) in relation to that particular contribution year, the amount of contribution to be returned shall be calculated in accordance with the formula:

(C- (A-P)) × R

where -

A   is the reckonable earnings,

C   is the amount specified in section 10(1) (c) for that particular contribution year,

P    is the amount of the insured person's reckonable earnings which equates to the allowable pension payment in that year, 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 paid in respect of the allowable pension payment exceeding the amount of reckonable earnings, to which the highest rate of contribution applied in that contribution year, the next highest rate of contribution paid in descending order.

(5)  Subject to sub-article (6 in the case of a self-employed contributor the amount of contribution to be returned under sub-article (3) shall be calculated in accordance with the formula:

P × R

where

P is the amount of the insured person's emoluments which equates to the allowable pension payment in that year, and

R is the rate of self-employed contribution paid by the insured person in that contribution year.

(6)  In the case of an insured person who is both an employed contributor and a self-employed contributor the amount to be returned under sub article (3 shall be determined:

(a)  in accordance with sub-article (4), and

(b)  in accordance with the formula:

P × R

where -

P    is the amount of the insured person's emoluments which equates to the allowable pension payment in that year, if any, in respect of which a return is not due under sub-article (4), and

R    is the rate of self-employment contribution paid by that person in that contribution year

(7)   (a)  Notwithstanding sub-articles (4) or (6) (a) where an employed contributor's reckonable earnings when reduced by the amount of allowable pension payment is greater than the amount specified in section 10 (1) (c) in relation to that particular contribution year, no employment contribution shall be returned.

(b)  Notwithstanding sub-articles (4), (5 or (6) (b), where the return of a contribution would have the effect of reducing that person's self-employment 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 and Family Affairs, this 17th day of December, 2003.

MARY COUGHLAN

Minister for Social and Family Affairs