S.I. No. 89/1990:

SOCIAL WELFARE (MODIFICATIONS OF INSURANCE) (AMENDMENT) REGULATIONS, 1990.

SOCIAL WELFARE (MODIFICATIONS OF INSURANCE) (AMENDMENT) REGULATIONS, 1990.

The Minister for Social Welfare, in exercise of the powers conferred on him by sections 3 and 7 of the Social Welfare (Consolidation) Act, 1981 (No. 1 of 1981), hereby makes the following Regulations:--

1. These Regulations may be cited as the Social Welfare (Modifications of Insurance) (Amendment) Regulations, 1990.

2. In these Regulations--

"the Principal Act" means the Social Welfare (Consolidation) Act, 1981 ;

"the Act of 1990" means the Social Welfare Act, 1990 (No. 5 of 1990);

"the Principal Regulations" means the Social Welfare (Modifications of Insurance) Regulations, 1979 ( S.I. No. 87 of 1979 );

"relevant person" means an employed contributor who is in receipt of any of the following--

( a ) a widow's (contributory) pension under section 92 of the Principal Act,

( b ) a widow's (non-contributory) pension under section 177 of the Principal Act,

( c ) deserted wife's benefit under section 100 of the Principal Act,

( d ) deserted wife's allowance under section 195 of the Principal Act,

( e ) death benefit by way of window's pension under section 50 of the Principal Act,

( f ) a social assistance allowance under section 197 of the Principal Act, or

( g ) a payment corresponding to a pension referred to in paragraph (a) or (e) from the competent authority of a Member State (other than the State) of the European Community under legislation to which the regulations of the Community on the application of social security schemes to employed persons and their families moving within the territory of the Community apply.

3. Notwithstanding the provisions of paragraph (a) of article 8 (2) of the Principal Regulations, the percentage rate of employment contribution payable under section 10 (1) (b) (i) of the Principal Act (as amended by section 36 of the Act of 1990) by a relevant person to whom article 8 (1) of the Principal Regulations applies shall be at the rate of--

( a ) 3 per cent. of reckonable earnings, with effect from the 6th day of April, 1990,

( b ) 4 per cent. of reckonable earnings, with effect from the 6th day of April, 1991, and

( c ) 5.4 per cent. of reckonable earnings, with effect from the 6th day of April, 1992.

4. Notwithstanding the provisions of subparagraph (i) of paragraph (a) of article 9 (2) of the Principal Regulations (as amended by the Social Welfare (Modifications of Insurance) (Amendment) Regulations, 1982 ( S.I. No. 82 of 1982 )), the percentage rate of employment contribution payable under section 10 (1) (b) (i) of the Principal Act (as amended by section 36 of the Act of 1990) by a relevant person to whom article 9 (1) of the Principal Regulations applies shall be at the rate of--

( a ) 3 per cent. of reckonable earnings, with effect from the 6th day of April, 1990, and

( b ) 3.83 per cent. of reckonable earnings, with effect from the 6th day of April, 1991.

GIVEN under the Official Seal of the Minister for Social Welfare this 6th day of April, 1990.

MICHAEL WOODS,

Minister for Social Welfare.

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

GIVEN under the Official Seal of the Minister for Finance this 6th day of April, 1990.

ALBERT REYNOLDS,

Minister for Finance.

EXPLANATORY NOTE.

Section 36 of the Social Welfare Act, 1990 provides that the exemption of recipients of widow's contributory and non-contributory pensions and other analogous payments from liability for the employee element of social insurance contributions will be phased out with effect from 6 April 1990. The 1990 Act provides that where such persons are now liable for the class A social insurance contribution, a contribution of 3% will be payable in the year commencing 6 April 1990, 4% in the year commencing 6 April 1991 and 5.5% in the year commencing 6 April 1992.

These regulations provide for a similar phasing out of the exemption from liability for the employee element of social insurance contributions in the case of recipients of widow's pension and other analogous payments who are in certain categories of modified insurance.