Nine current and retired political figures have initiated a High Court case challenging the constitutionality of a social insurance contribution that applies to public office recipients. Plaintiffs in the case include independent Congressmen Cathal Berry and Marc MacSharry; Paul Kehoe from Fine Gael, along with senators Paddy Burke and Jerry Buttimer from the same party; Senators Gerry Horkan and Diarmuid Wilson from Fianna Fáil; Independent Senator Gerard Craughwell; and Michelle Mulherin, formerly a Fine Gael TD and Senator.
The case is filed against the Social Protection Minister, the state of Ireland, and the Attorney General. The plaintiffs are represented by the Lucan-based law firm, Bowman McCabe Solicitors.
The suit is related to class K PRSI payments, which affect approximately 100,000 individuals including judges and public office holders earning over €5,200 annually, individuals paying PRSI on unearned income, and those with supplementary self-employed income. Class K, introduced in 2011 as a “solidarity” fund-raising initiative during the financial crisis, as explained by Social Protection Minister Heather Humphreys, compels politicians to contribute 4 per cent of their wages to PRSI, but does not provide benefits such as job seekers’ allowance or dental benefits, and impacts their pension rights as well.
After a High Court action settlement in 2017, county councillors were exempted from class K. Senator Gerard Craughwell, who was associated with the 2017 case, cautioned the Minister last year in the Seanad about potential additional legal issues if the Government fails to rectify the perceived inequity of the class K classification for politicians. In her reply, Minister Humphreys hinted that she may consider a Private Members’ Bill to address the issue, provided it has support from all parties.