S.I. No. 234/2021 - Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 1) (Reckonable Income) Regulations 2021

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 18th May, 2021.

I, HEATHER HUMPHERYS, Minister for Social Protection, in exercise of the powers conferred on me by sections 4 (adapted by the Employment Affairs and Social Protection (Alteration of Name of Department and Title of Minister) Order 2020 ( S.I. No. 447 of 2020 )) and 25 (1)(d) of the Social Welfare Consolidation Act 2005 (No. 26 of 2005), with the consent of the Minister for Finance, given after consultation with the Minister for Public Expenditure and Reform, hereby make the following Regulations:

Citation and construction

1. (1) These Regulations may be cited as the Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 1) (Reckonable Income) Regulations 2021.

(2) These Regulations and the Social Welfare (Consolidated Contributions and Insurability Regulations) 1996 to 2019 shall be construed together as one and may be cited together as the Social Welfare (Consolidated Contributions and Insurability) Regulations 1996 to 2021.

Definition

2. In these Regulations—

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

Definitions

3. Article 3 of the Principal Regulations is amended by the substitution of the following paragraph for paragraph (a) of the definition of “reckonable income” (amended by article 3 of the Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 6) (Return of Contributions) Regulations 2014 ( S.I. No. 514 of 2014 ):

“(a) in relation to a voluntary contributor, means all income derived from any employment, including any trade, business, profession, office or vocation and such reckonable income shall include

(i) any pension payable as a result of such employment and

(ii) share-based remuneration realised, acquired or appropriated, as the case may be, on or after 1 January 2011,

and”.

The Minister for Finance consents to the making of the foregoing Regulations.

GIVEN under my Official Seal,

19 April, 2021.

PASCHAL DONOHOE,

Minister for Finance.

GIVEN under my Official Seal,

12 May, 2021.

HEATHER HUMPHREYS,

Minister for Social Protection.

EXPLANATORY NOTE

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

These Regulations clarify that for the purpose of the voluntary contribution charge payable by former employed social insurance contributors, all income derived from any employment includes income from any pension payable as a result of employment, when assessing the amount of the reckonable income of such contributors.