Key Post PRSI and planning retirement

[Calmsea]

I just reread your #95 post. You retired from class A employment last December.
Do you have class A contributions during the calender year of your 63rd birthday ?
If you have a minimum of 39 class A of which at least 13 are paid class A you would qualify under the class A rules.

Unfortunately I was self-employed that year and paid class S contributions.

 

[S class]

Okay.

The subsidiary rules for class S are hard to understand.
Reading them they seem to state that income below 7500 euro per year could be subsidiary, but then extra complications are added in. The wording in the guidelines is confusing.

You should appeal the 65s benefit decision and also apply for Jobseeks Benefit Self employed the rate for this is the same as 65s benefit when you are aged over 65.

If none of this works and if you had previous class A employment before the year of your 63rd birthday, you could try asking DSP to fill in your 63rd year with class A credits.

It is allowable to claim class A credits in any year where you are also paying class S contributions. You could say you were not aware that you were entitled to claim class A credits at that time.

If you succeeded in this approach you could then possibly qualify under class A rules.
Your rental income would definitely be subsidiary under class A rules.

I know of other people who have succeeded in getting backdated class A credits.

 

[Calmsea]

Okay.

The subsidiary rules for class S are hard to understand.
Reading them they seem to state that income below 7500 euro per year could be subsidiary, but then extra complications are added in. The wording in the guidelines is confusing.

You should appeal the 65s benefit decision and also apply for Jobseeks Benefit Self employed the rate for this is the same as 65s benefit when you are aged over 65.

If none of this works and if you had previous class A employment before the year of your 63rd birthday, you could try asking DSP to fill in your 63rd year with class A credits.

It is allowable to claim class A credits in any year where you are also paying class S contributions. You could say you were not aware that you were entitled to claim class A credits at that time.

If you succeeded in this approach you could then possibly qualify under class A rules.
Your rental income would definitely be subsidiary under class A rules.

I know of other people who have succeeded in getting backdated class A credits.

Thank you for all that advice S Class. I will try all that you recommend.

 

[Calmsea]

I would really appreciate it if anyone knows the answer to this question re. Benefit Payment for 65s.

I make a loss each month on my rental property because the monthly interest payments on the tracker mortgage I have on it exceed the rent. I have no income from it and this won’t change until interest rates drop significantly. I was turned down for the Benefit payment for 65 year olds because they say I have a continuing rental income. I don’t have an income, I have a loss that I need to supplement with my savings. How can they say I have a continuing rental income when I have no profit after allowed interest payments and expenses?

 

[S class]

I rechecked the rules for subsidiary employment.
I don't think you qualify.

If you receive remuneration from the rental you are classed as employed. There doesn't have to be profit.

Also you would need to have had your normal self employment and rental running concurrently for 6 months immediately before your application for 65s benefit i.e. you would have to cease your normal self employment immediately before your application.

You would also be ineligible because you had a mixture of class A and class S in your last 3 years.

As well as all this you would not qualify if your rental remuneration is more than 7000 euro per year.

 

[Calmsea]

I rechecked the rules for subsidiary employment.
I don't think you qualify.

If you receive remuneration from the rental you are classed as employed. There doesn't have to be profit.

Also you would need to have had your normal self employment and rental running concurrently for 6 months immediately before your application for 65s benefit i.e. you would have to cease your normal self employment immediately before your application.

You would also be ineligible because you had a mixture of class A and class S in your last 3 years.

As well as all this you would not qualify if your rental remuneration is more than 7000 euro per year.

Thank you for all the advice S Class.