Key Post PRSI and planning retirement

outofmymind said:
11. Can eligiblity for this over65s benefit be made up any other way?
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If a person does not have a minimum of 39 A contributions in the year of their 63rd birthday they can still qualify if....

They have a minimum of 26 paid A contributions in the year of their 62nd birthday and also a minimum of 26 paid A contributions in the year of their 61st birthday.
 
Kev1964 said:
Hey Marsupial. I don’t know how to take the tone of this comment. I meant no disrespect to you or anyone else.

My point was in response to you suggesting that pro-rata in relation to the contributory pension was a “monster”.
I wished to prompt some elaboration. Perhaps I was clumsy with my verbiage.

Maybe you could explain what you meant rather than making what seems to me, an unclear connection between pro-rata (in relation to the state contributory pension) and the 4 questions?
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This is a Key Post. Hence one either answers people's PRSI queries or one doesn't. When I had clarified Slim's PRSI status, I indicated that I didn't feel competent to answer his questions relating to pro-rata. If you do, then why didn't you?
 
outofmymind said:
12. Is someone who has the required class A contributions for the year that they are 63 able to have eg part time self employed income in the year they are 65+ and claim over65s benefit at the same time??
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They can be in self employment and also in PAYE employment if the employments meet the rules for subsidiary employment. These are slightly complex. They can be found in the "Operational Guidelines for 65s benefit".
 
Marsupial said:
This is a Key Post. Hence one either answers people's PRSI queries or one doesn't. When I had clarified Slim's PRSI status, I indicated that I didn't feel competent to answer his questions relating to pro-rata. If you do, then why didn't you?
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I don’t see any reference to “pro-rata“ in Slim’s 4 questions but maybe you do. Anyway I don’t come on here looking for pointless arguments so please pick a different contributor if that’s what you want.
 
S class said:
Any pension taken as an annuity or occupational pension will be class M.
This is not reckonable.

A pension taken as an ARF of a minimum of 5000 euro per year up to age 66 is reckonable. (class S)
It doesn't matter whether this is taken weekly/ monthly/ or yearly.
After age 66 it changes to class M.
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Thanks S Class. That’s answered a key outstanding personal question for me.
 
outofmymind said:
1. PRSI payable on reaching state pension age - 0
Does this relate to the start of the tax year in which you become 66? Or to after your birthday?
Answer: It applies for the full year.
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For self employment (earned or unearned) it is class M for the full year of your 66th birthday.

For PAYE it only converts to class M after your 66th birthday.
If you are paid monthly your earnings for the month of your birthday will be class M.
Earnings before this will not be class M.
The same probably applies to weekly earnings.
 
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outofmymind said:
10. There is also something about needing some class A contributions the year you are 63 to get over65s benefit. Can anyone enlighten us??

Answer: The critical requirement for the 65s benefit is having at least 39 prsi contributions in the year of your 63rd birthday. If a person works until May of that year, they will need extra contributions to reach the 39 level. So they would require extra contributions (credits).
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There is flexibility regarding when the 13 paid class A contributions need to be made. This is explained in the "Operational guidelines for 65s benefit".

i.e. They do not necessarily have to be made during the year of the person's 63rd birthday.
 
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The information in this thread is of particular value to pre 95 public sector employees taking early retirement.

Most of these employees will have a few years of reckonable paid contributions from pre establishment.

There are a few Prsi milestones that these people can aim for....

1. Reach 260 reckonable paid prsi contributions.
This will qualify them for a pro rata pension.

2. Reach 520 reckonable paid prsi contributions.
This will qualify them for a contributory pension calculated using either Averaging or TCA method. They are at Average 10 contributions level at this stage.

3. Reach the late 600s to 750 level. (this can include reckonable credited contributions)

If they started working at age 16.
750 reckonable paid or credited contributions would allow then reach the Average 15 contributions level.

If they started working at age 20.
690 reckonable paid or credited contributions would allow then reach the Average 15 contributions level.
 
How long do you get reckonable PRSI stamps from signing on for credits when you stop work ?
  1. 20+ years paid (continues) contributions already
  2. Means tested so zero payment from SW
 
S class said:
For self employment (earned or unearned) it is class M for the full year of your 66th birthday.

For PAYE it only converts to class M after your 66th birthday.
If you are paid monthly your earnings for the month of your birthday will be class M.
Earnings before this will not be class M.
The same probably applies to weekly earnings.
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Top posts on this topic as usual.

Any idea what happens to voluntary contributors in the year of their 66th birthday? My birthday is in late November so it would be a bit of a kick in the teeth if I can't make a voluntary contribution for that whole year as I will be slightly shy of the 40 years contributions so every contribution will count and we are "likely" to be operating und a TCA regime by then (20 years away for me). Of course the rules could well change by then anyway, but it's good to keep abreast of these things even this far out I feel.
 
S class said:
You can get credits until age 66.
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I signed back in the 80s for a few years on 'assistance' as it was known then but I have no reckonable or indeed any PRSI stamps for those years on my record. Should I have ? I presumed as I didn't have enough prior to that for JB that these years would not have counted. I will query it but just wondering would anyone know here anything obvious I'm missing.
 
I don't know what happens with voluntary contributions. Basically in class S system no contributions are made in the year of 66th birthday. In the class A system contributions are made up to the pay week or month of your 66th birthday.
My guess would be that voluntary contributions might operate similarly. I.e. voluntary contributions based on class A might extend to your 66th birthday.
Are you making voluntary contributions based on S or A class?. If you are based on S and if you find out that it only works for class A, you could get 1 week of employment in Ireland to try and change your final year of voluntary contributions to the A class system. In my case I made voluntary contributions based on class S while in the same year I had class A credits. You are able to be in both classes simultaneously.

Are you going to have an ARF at age 65 ?
In my wife's case she reached age 66 in March. Her ARF drawdowns for January and February are at class S.
If you had an ARF in the year of your 66th birthday and made drawdowns of over 5000 euro before the month of your 66th birthday you should get 52 class S contributions for that year. There is an anomaly on the operation of ARFs. They are S class but the prsi is collected under the PAYE system.
 
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