Class d and signing for credits

[partnership]

Should someone who was paying a d contribution and took redundacy from the public sector apply for credits? Are there any advantages. Only 54 so will be seeking work but not entitled to job seekers.

 

[Early Riser]

Should someone who was paying a d contribution and took redundacy from the public sector apply for credits? Are there any advantages. Only 54 so will be seeking work but not entitled to job seekers.

As qualifying criteria for the State Pension are due to change over the next couple of years it is difficult to predict for sure. But under current rules there would be a potential advantage. If you get a job, as you say, you will be paying Class A PRSI. Under current rules if you have at least 260 full rate contributions along with D contributions you can apply for a mixed, pro-rata pension (normally a minimum of 520 full rate contributions are required). The more D contributions (and full rate contributions) you have the better.

I am not sure exactly how much more you may gain. You can see the current formula at Q 21 here: https://www.welfare.ie/en/Pages/Qualifying-for-State-Pension-Contributory.aspx#q20. However, as already said, how this will change under the new rules I don't know.