Pension from a variety of PRSI class contributions.

I am in a defined benefit scheme for approximately 14 years. Semi state in the University Sector, class D PRSI. Apart from that I have 32 Class A PRSI contributions from 91/92 and prior to that a scattering of J and A contributions during the mid 80's.

I am thinking of leaving the 'security' of this job and working in the private sector until retirment. I have the option of being self employed or be an employee. With regard to a pension I am wondering which is the better route or combination of routes for me to take. to be Self employed, PRSI employee AVC's PRSA's I need to have a pension income of 1,000 p.m. minimum.

I am forty seven now and hope to retire at 60. which gives me 13 years. I guess I could work on longer if I had to to reach my target of 1,000 p.m.

I don't seem to be able to figure it all out so any help or even a direction to a proper advisor would be much appreciated.

Have you called Welfare to ask them what you entitlements would be today if you retired on your existing PRSI contributions?

Thanks for coming back to me. I have not contacted Social Welfare about this aspect. I just got a list of my contributions. My understanding is that as it stands now I would not be entitled to anything from social welfare as I have so few full contributions. The bulk of my working life 15 years I have been paying the reduced rate of PRSI - Class D. I have contacted the pension advisor in my place of employment and am waiting for them to come back to me on what happens to my defined benefit pension if I leave now. I think it could be frozen.

I think I need to work out if in my new employment I should be self employed or be an employee. Would it make a difference the pension?

laila said:

I have contacted the pension advisor in my place of employment and am waiting for them to come back to me on what happens to my defined benefit pension if I leave now. I think it could be frozen.

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Be careful - you may need to get independent, professional advice on this and the other matters that you outline above.

I think I need to work out if in my new employment I should be self employed or be an employee. Would it make a difference the pension?

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Yes - and to many other issues too. I don't understand how there is any confusion about whether or not you will be an employee or self employed contractor.

Thanks for responding to my email. Yes you are probably right I could very well do with independent professional advice and maybe as my family say get my head examined for thinking of leaving a secure, if boring, job!

There is not exactly confusion about whether I would be self employed or and employee. The nature of the job being discussed would lend itself to either option and at this stage in the negotiations I am seeking to inform myself of which option would be better for me. I will then try to get my preferred option agreed to before I take on the job. Thanks again.