Class S PRSI and Pension

K

KOW

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Good evening all. My wife retires next January after 40 yrs as a Clerical officer in the Civil service age 61. Pension approx. 19k per annum.
We have been joined assessed for the past twenty years. We have a rental property producing a profit currently of 9k per annum. We have owned the property since 2003 and have filed tax return each year paying all taxes and levies. My wife also worked four years in Toronto Canada. Would she have any entitlement to State Pension or part of at 66 from income/taxes produced from rental and/or time spent working in Canada. Thanks in advance.
 
KOW said:
have owned the property since 2003 and have filed tax return each year paying all taxes and levies.
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Have you earned enough rental profit each (=>€5k a year) to pay Class S PRSI?

Have you checked her PRSI record?
 
NoRegretsCoyote said:
Have you earned enough rental profit each (=>€5k a year) to pay Class S PRSI?

Have you checked her PRSI record?
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Thanks for prompt reply. Only came across Class S PRSI tonight in another post. The property has been producing a profit of over 5k per annum for several years now. Have not checked Her PRSI record as tonight first time coming across S class PRSI. As mentioned we submit tax return each year.
Forgive the ignorance but how do I check on her PRSI record? Also could it be possible even though we are joined assessed that stamps be attributed to my PRSI record rather than hers. Property and mortage in both names. Finally any idea number of stamps required for OAP/or part of. Thanks
 
KOW said:
Forgive the ignorance but how do I check on her PRSI record?
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If you have MygovID you can do it that way. Click here.

You can also do it by post.

PRSI Records
Department of Employment Affairs and Social Protection
McCarter's Road
Ardaravan
Buncrana
Donegal
Ireland

Tel:(01) 471 5898 (If calling from outside the Republic of Ireland please call +353 1 471 5898)
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I've no idea if the PRSI was paid.....did a professional do it for you? Possibly, if there was <€5k rental profit each then no PRSI Class S was paid.

Otherwise look at eligibility for contributory state pension here. As a pre-95 public servant your wife won't have paid Class A PRSI. If she made Class S contributions they also have to start before age 56 to count.

You really have to get her records and share them here for better advice. It's complicated.
 
Cheers. Completed tax return myself each year. Logged on but only got as far as public service card required so will write and seek info. I thought in my ignorance once tax return submitted stamps automatically allocated. Profits in excess of 5k would have started before the age of 56.
will follow up. Many thanks.
 
Your wife should consider making AVC's on her public service pension. When she retires she should take out an ARF. The ARF will give a her an extra source of earnings and will be subject to prsi class S and will also allow her unearned rental income to be subject to prsi class S. Without the ARF her unearned rental income will be subject to prsi class K which is not reconable for the contributory pension. I previously explained this on another post as below. Most ARF providers require a minimum of 20000 euro to set up an ARF. She would need to act quickly to make a AVC contribution before 31 October this year in order to maximize the the amount of AVC contributions for last tax year and then make another AVC contribution before she retires for this tax year.

"If you are getting an occupational pension or an annuity you will be classed as M prsi.
When you have income classed as M prsi and your only source of other income is unearned then this unearned income will be classed as K prsi. This means that your rental and investment income will be K class prsi which is not reconable for state pension. If you have an ARF then you will pay S class prsi on the ARF and also on the other unearned income."
 
If your wife was paying prsi class D while working in the public service all her unearned rental income would have been classed as prsi K. She would need 10 years of full rate prsi contributions to qualify for the pension. These can be A or S contributions. She could earn 5 years of S contributions as outlined above. She might have some A contributions from her early unestablished years in the public service or from other Irish employment. If she cannot achieve the 10 years of full rate contributions she might still qualify for a small mixed class prsi pension.
 
bstop said:
If your wife was paying prsi class D while working in the public service all her unearned rental income would have been classed as prsi K.
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This is correct, so ignore my advice above.

If she has any liability on the rental income it would be Class K which does not generate a pension entitlement.

Class K contribtutions
Modified rate contributors, for example civil and public servants recruited prior to 6 April 1995, with self-employed earned income from a profession or a trade and any other unearned income are liable to PRSI at Class K.
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Re: 4 years working in Canada, take a read of this, the transferring of credits -> Irish system, for period working in Canada could be impactful here, so maybe check this out:

Combining social insurance contributions from abroad

Combining social insurance contributions paid in Ireland and abroad can help you qualify for a social welfare payment. Find out more.
www.citizensinformation.ie www.citizensinformation.ie
 
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