Dublin City Council (DCC) has been engaged in negotiations with two trade unions for more than a year regarding a dispute over the PRSI designation of some of its employees.
Between 140 and 180 workers could be affected by the problem and the Council is facing a bill in the region of €20 million, RTÉ News understands.
This dispute mainly relates to Council employees from the non-officer grade, like general operatives, who secured promotions after April 1995, when pension rules changed and were moved from PRSI Class A to Class D.
In a recent letter sent to the affected individuals, and seen by RTÉ News, the Council said it had "conducted a review" and that "a number of employees were mistakenly classified as Class D."
It added that it was "now clear" that "these employees should have remained on Class A PRSI."
The letter said that the Council was "seeking a resolution to the issue" and that it had "submitted a business case to the Department of Housing, Local Government and Heritage."
One of the affected workers told RTÉ News, on condition of anonymity, that he was being advised by the Council that he is obliged to retire under Class A rules, which would mean he would no longer retire at 60 with access to the superannuation pension scheme as per Class D.
Trade unions contend this issue had a negative impact regarding accrual of multiple pension benefits, including for spouses for DCC workers who die.
It is believed this problem has been the subject of lengthy negotiation, including with industrial relations mechanisms of the State and that the Council executive is preparing a substantial offer to rectify the problem.
Some Council workers, who were considering retiring, have chosen to hold-off until the issue has been resolved.
Under Class A PRSI, an employer pays 11.05%.
Under Class D PRSI, an employer pays 2.35%.
Dublin City Council facing multi-million euro PRSI bill
In a statement to RTÉ News, Dublin City Council said it is "aware of the issue of the misclassification of a small number of employees for PRSI purposes and is considering how the matter can be addressed."
A statement from the Department of Housing and Local Government said: "As the employer in this case, this is entirely a matter for Dublin City Council."
The Labour group on Dublin City Council has now tabled an emergency motion for next Tuesday's meeting which calls on the Chief Executive to make an interim statement on the issue.
Councillor Dermot Lacey said they want to know what underpayment of PRSI contributions has been made, the implications this has for staff and the city finances.
The motion also calls for a comprehensive statement from the Council's Executive to be furnished to the next meeting of the Finance Committee or the City Council, whichever is the sooner.
