Key Post PRSI and planning retirement

[redstar]

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) ?

 

[S class]

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.

 

[redstar]

Thats great S Class, thanks !
So any drawdowns will do so long as it all adds up to at least 5000 over 12 months.

 

[ClubMan]

@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).

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]

The investment income class S in some years is very late (October onwards).

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.

 

[ClubMan]

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.

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.