Key Post PRSI and planning retirement

On the subject of drawdowns, if regular income is taken as 417 per month (e5004 yr) when do the Class S 'stamps' get applied ?
Drawdowns thru most of the year would be less than 5000 so no Class S would be awarded until the total reaches 5000. Is that right?

And do any mix of drawdowns attract the 52 Class S as long as the TOTAL for the year is 5000 or more (ie 6 x 417 then 1 x 2500) ?
 
The ARF provider sends out a monthly payslip. This pay slip shows the deductions for employee Prsi. Either 4 or 5 per month, depending on how many weeks in each month.

So the Class S will build up each month and total 52 at the end of the year.

Any combination of drawdowns will gain you 52 Class S at the end of the year.

The payslips might not show 52 S at the year's end.

For example if you made one yearly drawdown it would only generate one payslip and this could show 4 or 5 Class S.

Provided that this one drawdown was 5k + your Prsi record will eventually show 52 S, but it will be many months into the following year before this updates.

If the monthly drawdowns are less than 417 euro, the payslip will still show Prsi Class S deductions but these will never appear in your Prsi record.
The Prsi is still charged but no benefits are given.

There is a facility in this case to apply for a Prsi refund.
 
S class said:
@ClubMan I had a look back over my statements for the last few years.

I got it wrong in post #157.

The ARF class S comes in first (between April and July)
The investment income class S in some years is very late (October onwards).
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Thanks @S class!

As it happens, I also spotted another (unrelated) issue with my PRSI contribution record - only 26 rather than 52 Class A1 contributions for the 2000/2001 tax year even though I was working for the full year. However I did change jobs about halfway through the tax year (September/October) and it looks like my P60 for that tax year only covered the contributions from the second job and not the first for some reason. I'm not sure how this happened and how I didn't notice it at the time. Luckily I have some payslips and other documentation as evidence if needed. I've emailed DSP to see if they can rectify this.
 
S class said:
The investment income class S in some years is very late (October onwards).
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Thinking this through.

In many years I submit my form 11 in January with investment Prsi paid.
This doesn't appear in my Prsi record until near the end of the year.

Presumably Revenue only forward the Prsi paid with the form 11 to DSP after the closing date for self assessment. Maybe because the form 11 could be amended during the year.

This would explain why the class S relating to this only appears on the Prsi record near the end of the year.
 
S class said:
Thinking this through.

In many years I submit my form 11 in January with investment Prsi paid.
This doesn't appear in my Prsi record until near the end of the year.

Presumably Revenue only forward the Prsi paid with the form 11 to DSP after the closing date for self assessment. Maybe because the form 11 could be amended during the year.

This would explain why the class S relating to this only appears on the Prsi record near the end of the year.
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I'm not self-assessed (will be next year) but that's my experience under PAYE and when only receiving SW related credits or no contributions/credits at all... My PRSI contribution statement requested via myWelfare never has any info about contributions/credits in the current year and they only appear after year end.
 
I have a monthly ARF distribution (annual total in excess of €5,000) and receive a payslip each month showing the number of PRSI contribution weeks for that month. I've watched my contributions record online over the last five years and these 52 S class paid contributions generally appear in early April of the following year. Credited contributions on the other hand appear to be a lot more random in terms of when they are updated.
 
Just looking for some advice on this topic please. I have 171 A credits, 219 reckonable credits, 698 home caring credits and 17 years of paid D contributions. I last worked in 2020 and I'm currently signing for credits. I'm due to get a small public service pension at 60, in 3 years time and would like to boost my pension income. What can I do to qualify for a state pension? Is it possible or worth it to start a pension using some savings? If I take part in a Community Employment scheme, could I contribute some of the earnings to a pension?
 
Was your last employment in 2020 class A Prsi employment ?
Are you signing for Jobseekers credits based on class A employment ?
How many Reckonable paid prsi contributions do you currently have ?
Are the 171 A contributions your paid class A contributions ?

It's definitely possible for you to qualify for Benefit Payment 65 and a portion of the state Contributory Pension with some future Prsi planning.

When I have the above details I can give you some assistance.
 
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ClubMan said:
Thanks @S class!

As it happens, I also spotted another (unrelated) issue with my PRSI contribution record - only 26 rather than 52 Class A1 contributions for the 2000/2001 tax year even though I was working for the full year. However I did change jobs about halfway through the tax year (September/October) and it looks like my P60 for that tax year only covered the contributions from the second job and not the first for some reason. I'm not sure how this happened and how I didn't notice it at the time. Luckily I have some payslips and other documentation as evidence if needed. I've emailed DSP to see if they can rectify this.
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They came back to me and asked for more information. I provided them with whatever I had and then heard nothing. So I pinged them again and now they tell me that my case is waiting on somebody to be assigned to it... :(
 
S class said:
Was your last employment in 2020 class A Prsi employment ?
Are you signing for Jobseekers credits based on class A employment ?
How many paid class A contributions do you currently have ? (171 or 219)

It's definitely possible for you to qualify for Benefit Payment 65 and a portion of the state Contributory Pension with some future Prsi planning.
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Yes, last employment was Class A. I didn't work after that, so I'm signing for Jobseeker's credits based on that job. I have 171 paid A contributions.
 
Okay.

To get any Contributory State pension you will need a minimum of 260 paid contributions. So you need an extra 89.

You could get these by getting PAYE employment of at least 38 euro per week for 89 weeks, or by paying voluntary Prsi contributions.

If it is easy for you to get employment, then this would allow you to achieve the 260 minimum level. If you wish to remain in employment beyond this period, continue to work until at least 13 weeks into the calendar year of your 61st birthday and then if you wanted, you could cease this employment and claim Jobseekers benefit and sign on for credits up to age 66. This would allow you to qualify for Benefit Payment 65.

If you do not want to return to employment you could pay voluntary Prsi contributions for 2 years to gain an extra 104 paid contributions to reach the 260 level.

This would cost you 500 euro per year for the two years.

If you decide to do this you should continue to sign on for Jobseekers credits.
Voluntary Prsi and Jobseekers credits are allowed at the same time.
The Jobseekers credits allow you to continue to qualify for treatment benefits and also to keep the possibility of qualification for Benefit Payment 65 open to you.

If you then get 13 weeks of PAYE employment in any one of the calendar years of your 61st, 62nd, 63rd, 64th or 65th birthdays you would qualify for Benefit Payment 65.

Providing you reach the 260 paid Prsi level, your home caring credits will become Reckonable for the Contributory Pension.

Up to 520 Jobseekers credits would also be reckonable for the Contributory Pension.

If you calculate that you will exceed 520 Jobseekers credits before age 66 you can make extra voluntary contributions to make up to the maximum possible Reckonable contributions level at age 66.

Continue signing on for Jobseekers credits regardless of what you do up to age 66, in order to keep all options open to you.
 
Thank you for the detailed reply. I have just checked the Citizens Information site about voluntary contributions and it appears that I would need to have 520 paid contributions in order to make voluntary contributions. (I'm not sure if this information is up-to-date).
The local INTREO office informed me that they are now allowing unemployed people over 55 who are not eligible for Jobseeker's Benefit/ Assistance to apply for Community Employment Schemes. The payment is subject to A rate PRSI. (this information is not yet on the Citizens Information site). So maybe I could build up some credits that way. I will continue to sign for Jobseeker's credits in the meantime.
 
summer12 said:
Thank you for the detailed reply. I have just checked the Citizens Information site about voluntary contributions and it appears that I would need to have 520 paid contributions in order to make voluntary contributions. (I'm not sure if this information is up-to-date).
The local INTREO office informed me that they are now allowing unemployed people over 55 who are not eligible for Jobseeker's Benefit/ Assistance to apply for Community Employment Schemes. The payment is subject to A rate PRSI. (this information is not yet on the Citizens Information site). So maybe I could build up some credits that way. I will continue to sign for Jobseeker's credits in the meantime.
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But you have "17 years of paid D contributions" - which will bring you well over the 520 paid contributions threshold (they don't have to be paid reckonable contributions)! So if you want to purchase VCs, then away you go!
 
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summer12 said:
Thank you for the detailed reply. I have just checked the Citizens Information site about voluntary contributions and it appears that I would need to have 520 paid contributions in order to make voluntary contributions. (I'm not sure if this information is up-to-date).
The local INTREO office informed me that they are now allowing unemployed people over 55 who are not eligible for Jobseeker's Benefit/ Assistance to apply for Community Employment Schemes. The payment is subject to A rate PRSI. (this information is not yet on the Citizens Information site). So maybe I could build up some credits that way. I will continue to sign for Jobseeker's credits in the meantime.
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The info about the 520 paid contributions seems to be right- unless there is a loophole somewhere. Citizen Info is up to date.
They don't let you make any voluntary contributions until you have paid 520 contributions through work only.
 
Marsupial said:
But you have "17 years of paid D contributions" - which will bring you well over the 520 paid contributions threshold (they don't have to be paid rerckonables)! So if you want to purchase VCs then away you go!
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I thought they had to be A contributions-thank you for clarifying. Looking at the rules for this- would I need to make 2 years voluntary contributions before the end of 2025 as I last worked in 2020? Or does it matter when I make them as I am currently getting credited contributions for signing on?
 
You can make backdated voluntary contributions back to your last paid A contribution.
You can also make future contributions onwards for any year up to age 70, if you choose.
(Providing you continue to sign on for credits up to age 66)

You can continue signing on for Jobseekers credits until age 66. Maximum 520 are allowed as reckonable.

Bear in mind that your pre entry credits are also included in the 520 maximum allowable Reckonable credits.

You can be employed and pay Prsi up to age 70.

So your future options are to gain Reckonable Prsi up to age 66 and apply for the Contributory pension, or you could defer your pension up to age 70 and gain a larger pension.
 
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Forumuser said:
The info about the 520 paid contributions seems to be right- unless there is a loophole somewhere. Citizen Info is up to date.
They don't let you make any voluntary contributions until you have paid 520 contributions through work only.
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Class B and D are included in the 520 requirement.
If a person has 519 class B or D and gains 1 class A contribution they can then be eligible to pay voluntary Reckonable contributions.
 
S class said:
You can make backdated voluntary contributions back to your last paid A contribution.
You can also make future contributions onwards for any year up to age 70 if you want.
You can continue signing on for Jobseekers credits until age 66. Maximum 520 are allowed as reckonable.
You can be employed and pay Prsi up to age 70.

So your future options are to gain Reckonable Prsi up to age 66 and apply for the Contributory pension, or you could defer your pension up to age 70 and gain a larger pension.
Click to expand...
S class said:
Class B and D are included in the 520 requirement.
If a person has 519 class B or D and gains 1 class A contribution they can then be eligible to pay voluntary Reckonable contributions.
Click to expand...
Many thanks for your help.
 
summer12 said:
Many thanks for your help.
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S class said:
Class B and D are included in the 520 requirement.
If a person has 519 class B or D and gains 1 class A contribution they can then be eligible to pay voluntary Reckonable contributions.
Click to expand...
May I jump on this please. My husband has 40 years of class D and 262 A . He also has 38 reckonable contributions and is at present signing for credits since he finished working in October. . He will be 66 in May. He was thinking of applying for a pro rata pension when he is 66 which I think is about €30 ish per week?? Perhaps he should apply for his pension when he is 70 if he is eligible to pay €500 p. a. or is it a percentage of his last earnings? Any help S class would be very much appreciated
 
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