# Can claiming jobseekers payment affect contributory pension?



## rtj (11 Mar 2015)

Hi,

Can claiming a jobseekers payment affect contributory pension?

I am asking this question for a self-employed individual who has paid their stamps/PRSI contributions annually for around 40 years.

His self-employed income reduced significantly over the last 5 or so years but he has not applied for benefits to supplement his income. He has been living on ~€40 per week (but does not have to pay for accommodation).

I don't understand PRSI contributions well, and am confused by the idea of someone's stamps being "used up" (like when moving from JB to JA).

If this person applied for a jobseekers payment (as per this page: http://www.citizensinformation.ie/e...ed_people/self_employed_and_unemployment.html) could this deplete his contributions and affect his contributory pension (which is due in 4 years)?

Any advice would be greatly appreciated.


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## gipimann (11 Mar 2015)

It wouldn't deplete his contributions - if he is eligible for Jobseeker's Allowance (the means-tested payment), then he would receive a PRSI credit, which would maintain his contribution history for the state pension.

"Stamps used up" refers more to a time limit for claiming a payment which a person qualifies for based on their PRSI contributions.  For example, Jobseeker's Benefit, which is based on PRSI contributions, is payable for a maximum of 9 months.

PRSI contributions paid by the self-employed (class S) do not entitle a person to Jobseeker's Benefit, so if he signs on, he will be means-tested.


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## rtj (11 Mar 2015)

That's great. Thank you for your reply!


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## Monbretia (11 Mar 2015)

If he is making so little is he paying self employed PRSI every year?


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## Black Sheep (11 Mar 2015)

He would receive PRSI credits while on jobseekers allowance if he had been paying Class A contributions directly before the jobseekers payments but it appears he went from self-employment (class S) to jobseekers and there are no credits following self-employment. 
If he could some part-time work even for a short time he would change to class A contribution and any credits that would follow would be at the class A rate and would therefore be reckonable for Pension


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