S.I. No. 243 of 2001

SOCIAL WELFARE ACT, 2001 (PART 5) (COMMENCEMENT) ORDER, 2001

The Minister for Social, Community and Family Affairs, in exercise of the powers conferred on him by section 31 of the Social Welfare Act, 2001 (No. 5 of 2001) , hereby orders as follows:

Citation.

1.   This Order may be cited as the Social Welfare Act, 2001 (Part 5) (Commencement) Order, 2001.

Commencement.

2.   The 29th Day of May 2001, is hereby appointed as the day on which Part 5 of the Social Welfare Act, 2001 (No. 5 of 2001) shall come into operation.

EXPLANATORY NOTE

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

This Order provides for the commencement of Part 5 of the Social Welfare Act, 2001 with effect from the 29th of May 2001.

Part 5 provides for amendments consequential on the alignment of the income tax and calendar year.

The alignment process will mean that the period commencing on 6 April 2001 and ending on 31 December 2001 will be a nine month tax year. Accordingly Section 29 provides that the Minister may make Regulations to provide for the preservation of rights for all contributors with regard to entitlement to benefit in that short tax year.

Section 30 sets the annual PRSI flat-rate contributions and allowances in 2001 at 74% of the normal full year amounts in line with income tax arrangements for 2001.

Section 30 also provides for transitional arrangements so that claims to benefit made in 2002 will be decided by reference to the contribution year April 2000 to March 2001 rather than the nine month tax year from April 2001 to December 2001.

As contribution records in respect of this period would not be available until later in 2002 it is necessary to maintain the current gap between the date of a claim and the contribution year on which entitlement is based.