A High Court challenge has been taken by nine serving and former politicians to the constitutionality of a social insurance payment applicable to holders of public office.
The proceedings are by Independent TDs Cathal Berry and Marc MacSharry; Fine Gael TD Paul Kehoe; two Fine Gael senators, Paddy Burke and Jerry Buttimer; Fianna Fáil senators Gerry Horkan and Diarmuid Wilson; Independent Senator Gerard Craughwell; and Michelle Mulherin, a former Fine Gael TD and Senator.
The case is against the Minister for Social Protection, Ireland and the Attorney General. The nine are represented by Bowman McCabe Solicitors, based in Lucan, Co Dublin.
A statement of claim has yet to be served but the action concerns class K PRSI contributions, which apply to some 100,000 people, including judges and public office holders with an annual income of more than €5,200, people who pay PRSI on unearned income and to some people with additional earned self-employed income.
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Under class K, politicians must pay 4 per cent of their salaries in PRSI but are not entitled to benefits such as job seekers’ allowance or dental payments. Their pension entitlements are also affected.
Class K was introduced in 2011 in what the Minister for Social Protection, Heather Humphreys, has described as a “solidarity” income-generating measure during the financial crisis.
County councillors were removed from the class K designation in 2017 under a settlement of a High Court action over their inclusion.
Mr Craughwell, who had some involvement in that case, warned the Minister in the Seanad late last year of possible further legal action if the Government did not address the alleged unfairness of the class K designation for politicians.
In response, Ms Humphreys indicated she might accept a Private Members’ Bill addressing the issue if it had cross-party support.
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