Do I qualify for the Payment at 65 from DSP?

Hi,

I've read numerous threads on this subject but am still confused as to whether I am likely to qualify or not for the state payment for people retired at 65.


Here is the situation

1. I am 62, No longer in employment and in receipt of income from an ARF so pay a Class S stamp every week.
2. I did receive Unemployment Benefit for 39 weeks but that has ended.
3. I don't have any other income apart from a ver small amount of interest from bas (<1K)
4. I plan to sign on for credits from DSP shortly.

Is this enough to qualify...ie in the year I turn 63 ("the relevant year") I will have 52 Class S and hopefully the same amount of credits

Or do I need something else i.e. work for 13/39 weeks during the year I turn 63.

Many thanks in advance for any clarity.

Joe

If you don't have a minimum of 13 weeks of paid class A contributions in the calendar year of your 61st birthday, or 13 paid class A contributions in a later calendar year, you will need 13 paid class A in any future calendar year up to your 65th birthday.

Definitely sign on for credits as these are required in the calendar year of your 63rd birthday.

Hopefully your 63rd birthday falls in 2025.
If not you have missed the boat.

If it does fall in 2025 sign on now or March 2025 at the latest.

The class S contributions are reckonable for the contributory pension, but of no use to you for qualification for BP 65.

Thank you S class...that is the level of clarity I was seeking....
Really appreciate your efforts here to help everyone.

Joel

S Class, are the ARF Class S contributions not reckonable for the BP65 even if you had been previously self-employed, rather than an employee?

The citizens information URL provided in the OP suggests they may be, when it says:

"Have paid 52 PRSI self-employment contributions at Class S in the Governing Contribution Year."

But maybe the system somehow distinguishes between Class S contributions from self-employment (reckonable for BP65) and Class S contributions from an ARF (not reckonable for BP65), could that be the case?

Thanks for all your contributions on this forum, btw. You're a wealth of information.

Mostly Carbon said:

are the ARF Class S contributions not reckonable for the BP65 even if you had been previously self-employed, rather than an employee?

Click to expand...

Yes they are Reckonable in the situation you describe.

You have to be careful with the timing of the ceasing of your self employment.

I think that provided you have ceased the self employment in the period from the start of the calendar year of your 63rd birthday up to the claim date for BP 65 you will qualify.

(You could for example submit self employment earnings of minimum 5k on 1st January and cease the self employment on 2nd January and get the required 52 S for the calendar year of your 63rd birthday.)

If you have ceased your self employment before this period, you would need to restart the self employment and then cease again in the allowed time period.

It's difficult for a person who only has class S from an ARF to meet the ceasing employment rule.

They would need to either exhaust their ARF or convert it to an Annuity to cease their self employment. (ARFs are classed as self employment.)

I don't know if anyone has successfully managed to do this and then qualify for BP 65.
But in theory this should work as all the rules would be met.

S class said:

It's difficult for a person who only has class S from an ARF to meet the ceasing employment rule.

Click to expand...

Ah of course. Was overlooking this aspect, makes perfect sense. Thanks a lot for the comprehensive reply.

If income from a ARF is below 5000 and so no Class S is payable - is that relevent for BP65 qualifying ?

In this case the ARF would not be classed as insurable self employment. You are allowed to apply for a refund of any Prsi deducted at source for that year.

Are you asking in relation to ceasing a self employment in order to try to qualify using class S Prsi rules ?

If the ARF went below 5k after the start of the calendar year of your 63rd birthday it might meet the rule of having ceased a self employment. Again I am speculating about this.