Hi Palerider. Can that work for a public servant who retires early and can it be pro rata for contributions from age 58 up to age 66?If you are not working, say early retired, you can apply to become a voluntary contributor to the Dept Social Protection, the process is easy, you then pay €500 a year in arrears ( as it is now ) to the Dept Social Protection and that keeps your record at 100% contributions, the Dept. write to you each year following your acceptance so you will not miss it.
Hi Palerider. Can that work for a public servant who retires early and can it be pro rata for contributions from age 58 up to age 66?
Understood, but can it be done for a public servant who retires sometime in the future?Presumably you can't do it retrospectively?
e.g. to cover the years between a summer job as a kid and entering the workforce?
Thanks.
Yes. The current system is very unfair to those who started their work records early - either by not going to college and starting work at 17/18 or, as you say, by taking a summer job. My understanding though is that the system is moving to a 'total contributions' approach where you would get a full pension if you have 30 years of contributions. This seems fairer.That person would fail the "employed for an average of 48/52 weeks test though, no?
A disincentive to take a summer job as a 16 year old if ever there was one.
Like most people, I had summer job. Then I was in school and college etc. This has a dilutitive effect on my PRSI record, meaning I may be shy of the 48/52 requirement.
If you are not working, say early retired, you can apply to become a voluntary contributor to the Dept Social Protection, the process is easy, you then pay €500 a year in arrears ( as it is now ) to the Dept Social Protection and that keeps your record at 100% contributions, the Dept. write to you each year following your acceptance so you will not miss it.
Unfortunately, it's not as nice as just paying €500 a year (unless you were previousy a self-employed Class C contributor). Contributions are based on your prior income and you may pay a higher rate than standard PRSI... From welfare.ie:It does not cover lost years, if you qualify regardless of circumstances then you qualify, once you pay the requested amount annually you are deemed to have paid a full stamp, in theory by doing this you have no gaps, you must apply within a short time after leaving the workplace, not sure how long that is.
So if your income in your final year working was 50,000, you would need to pay 3,300 annually in voluntary contributions."The rate of Voluntary Contributions payable is always determined by the last rate of PRSI contribution paid by a person. There are three different rates of voluntary contributions.
High Rate: This rate is payable by you if the last PRSI contribution paid by you is at Class A, E or H. The amount payable in each contribution year is a percentage rate of your reckonable income in the preceding contribution year. This percentage rate is currently 6.6%. The minimum annual payment is €500.00.
Some see one sixth of there payroll go each week to fund there state pension others only have to pay 500E per year for the same pension ?
I Know well what you are on about Up until a few year ago when my wages reached a certain level PRSI stopped it was capped because that was what it would have taken to provide a state contributory pension the only thing that has changed is the piggy backers are now reaching retirement age now and it is very easy to spot them ,If you want to plain about equity in payouts then why aren't you complaining that not everyone's one sixth of payroll is the same either. So, having been well inside the top 10% of earners (who paid over 60% of all the income tax), I should be complaining that well over 90% of even the full contributors will be "piggybacking" on me. Do you really want to get into that argument?
It is the top 10% who will be paying for the piggybackers from now on trough earned and unearned taxesIf you want to complain about equity in payouts then why aren't you complaining that not everyone's one sixth of payroll is the same either. So, having been well inside the top 10% of earners (who paid over 60% of all the income tax), I should be complaining that well over 90% of even the full contributors will be "piggybacking" on me. Do you really want to get into that argument?
What a load of nonsense, how dare you suggest I am a piggybacker who has not paid his share, I have 35 years paid Class A contributions and actually have no need to continue as a voluntary contributor at all, also if you read the posts you will see that the €500 is a minimum payment.