Early retirement, PRSI contribution and contributory state pension entitlement

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Orla18

Registered User
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Hi. Hoping for some advice on a complicated enough situation. Single person. Age 56.
I took cost neutral early retirement from a public sector job in 2018...... totally burnt out, can't go back.I get a modest pension of 13000euros PA (20 years service with transferred service and added years).
I also have rental income of 6000 net per year.
My PRSI record;
2002, commenced servise, 38 class A, 14 credited
2003-2017 inclusive, 52 class A per year
2018, 18 Class A, 34 class M.
2019-2029; potentially no PRSI contributions.

I had hoped to use my rental income to contribute Class S PRSI but find out I cannot as I have pension income...I pay Class K on rental income (so annoying),,,6.6% and no credits for PRSI!!
I cannot sign on for Jobseekers as I am spending time abroad helping to care for a very sick family member and cannot sign on. This will be a limited time but unpredictable duration.
I will get Supplementary pension at 60 years (4 years time) but I understand there are no PRSI credits available with this.

I would be very grateful if anyone could give me an idea of my state contribution pension entitlements as things stand. My needs are not great.....I could accept the situation if I qualified for at least a reduced rate pension. I just find it hard to interpret the rules.
 
Orla18 said:
I will get Supplementary pension at 60 years (4 years time) but I understand there are no PRSI credits available with this.
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This is correct. The Supplementary will be Class M (same as your current Occ Pension) and of no value for state Pension purposes.

Noone can say what your entitlement will be with full certainty. We will be changing to a new "total contribution" system shortly - the second half of 2020 is the most recent suggested date. The specific details have not been stated although the general parameters are known. It would seem that 40 years worth of contributions will be need for a full pension (some of which may be credited contributions - exactly how many unclear). Anything less than this and the pension is reduced proportionately, eg, 20 years worth of contributions gives half of full pension, 10 years gives a quarter. You seem to have about 16 years of contribution - that is 16/40 of full pension.

What about before 2002 - have you any contributions from back then - in Ireland or abroad ? If you were out of work because of caring for a child or disabled/dependent person you may qualify for credits under the Homemaker's Scheme: https://www.citizensinformation.ie/.../social_insurance_prsi/homemakers_scheme.html
 
Orla18 said:
I cannot sign on for Jobseekers as I am spending time abroad helping to care for a very sick family member and cannot sign on. This will be a limited time but unpredictable duration.
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As this situation could change you may yet be able to apply for Jobseekers. I am unsure of the exact rules re contribution years but you should be ok applying any time in 2020 and possible in 2021. See rules here : https://www.citizensinformation.ie/...mployed_people/jobseekers_benefit.html#l1f4da
 
I was working in UK from 1987-2000. Some self employment (no pension) some employment...transferred service to Irish scheme.
Stayed at home in 2001 to get children settled in school etc.
I pay voluntary contributions to UK state pension (sorry, forgot to mention that)! So, cannot make voluntary contributions to Irish scheme at the same time...I couldn't afford to anyway, voluntary PRSI is soo expensive!
 
Noone can say what your entitlement will be with full certainty. We will be changing to a new "total contribution" system shortly - the second half of 2020 is the most recent suggested date. The specific details have not been stated although the general parameters are known. It would seem that 40 years worth of contributions will be need for a full pension (some of which may be credited contributions - exactly how many unclear). Anything less than this and the pension is reduced proportionately, eg, 20 years worth of contributions gives half of full pension, 10 years gives a quarter. You seem to have about 16 years of contribution - that is 16/40 of full pension.

Thanks for that information Early Riser. :)

It is challenging when the ground rules change so much, and makes it very difficult to plan.
 
If you are applying for Jobseekers benefit the criteria is that you must have paid 104 contributions since you first started work and 39 paid in the relevant tax year - for claims in 2019 the relevant tax year is 2017 OR 26 paid in the relevant tax year and 26 paid in the year before the relevant tax year. If you do not apply until 2020 the relevant tax year will be 2018 and you appear to have only 18 paid so you should try and claim in 2019. The jobseekers benefit is only paid for 9 months. Jobseekers allowance is means tested and as you appear to have means you would be unlikely to qualify.
 
Feemar5 said:
If you are applying for Jobseekers benefit the criteria is that you must have paid 104 contributions since you first started work and 39 paid in the relevant tax year - for claims in 2019 the relevant tax year is 2017 OR 26 paid in the relevant tax year and 26 paid in the year before the relevant tax year. If you do not apply until 2020 the relevant tax year will be 2018 and you appear to have only 18 paid so you should try and claim in 2019. The jobseekers benefit is only paid for 9 months. Jobseekers allowance is means tested and as you appear to have means you would be unlikely to qualify.
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Yes, I was misreading those rules, Feemar5. It would be important to claim in 2019 if claiming at all.
 
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