30 Deputy Noel Ahern asked the Minister for Finance the position regarding the introduction of the universal social charge; if he will outline the rates applying to retired public servants in receipt of medical cards and the rates applying where the sole income is public service pension; where income is public service pension and other, that is another occupational pension and social welfare State pension; and if he will make a statement on the matter. [4398/11]

The position is that the Universal Social Charge (USC) is applied at the following rates:

2% on the first €10,036 (€193 per week)

4% on the next €5,980 (€193.01 to €308.00 per week) and

7% on the balance.

For persons aged 70 years and over the USC is applied at the following rates:

2% on the first €10,036 (€193 per week)

4% on the balance.

In addition, I should point out that I introduced a Committee Stage amendment during the Finance Bill 2011, which provides for medical card holders to be chargeable to the USC at the following rates:

2% on the first €10,036 (€193 per week)

4% on the balance.

Furthermore, it should be noted that payments from the Department of Social Protection such as the contributory and non-contributory State pension are exempt from the USC. Also, where an individual's total income which is chargeable to the USC, is below €4,004 in a year of assessment, the USC would not apply.

Therefore, based on the question put forward by the Deputy, where a retired public servant is in receipt of a medical card and has a State pension from the Department of Social Protection and a public service pension they will only be chargeable to the USC on their public service pension at a rate of 2 per cent on the first €10,036 per annum and 4 per cent on the balance, assuming it is above €4,004 per annum.