PRSI credits query

[January25]

Hi my spouse is approaching his 53rd birthday. He has 1473 reckonable PRSI credits. So he is over 11 years short of the 2080 needed. He is a public servant.spent a year in the UK but has worked otherwise continuously in Ireland in the public sector since 1996. He is hoping not to work for another 11 years. Ideally would like to take an actuarily reduced pension at 59 or 60 due to stress. How will he make it to the 2080 needed for a full pension ? Is it even possible ?

 

[LDFerguson]

He can start an AVC or AVC PRSA now and when he retires at 59 or 60, use some or all of the AVC fund to purchase an Approved Retirement Fund. Withdrawals from an ARF pay Class S PRSI which count towards the State Contributory Pension.

 

[Ruffian]

He is a public servant.spent a year in the UK but has worked otherwise continuously in Ireland in the public sector since 1996. He is hoping not to work for another 11 years. Ideally would like to take an actuarily reduced pension at 59 or 60 due to stress.

Public sector or the public service? If he has worked in the public service since 1996 how come he does not have a "normal retirement age" of 60? Or had he have a break in service post 2004 (eg, the year in England)?

 

[S class]

It is possible for him to reach 2080 without extra employment

Does he have any unearned income ?
(This could be rental, bank deposit interest or share dividends)

He can cease his employment and claim Jobseekers benefit. This is paid for 9 months and includes Jobseekers credits for this period. When the payments end he can sign on for Jobseekers credits up to age 66.(he might qualify for Jobseekers allowance)

A maximum of 520 Jobseekers credits are reckonable for the COAP. He will exceed this level.

He would need to pay voluntary contributions for 2 years to make up to the full 2080 level.

He should pay the voluntary contributions for any year where he had no earnings in the previous year. This will ensure that he pays the minimum 500 euro fee. So the voluntary contributions should be paid in the period before he starts his occupational pension.

He could avoid the need to pay voluntary contributions if he makes AVCs and then uses these to set up an ARF.
ARF drawdowns of 5k or more per year gain 52 reckonable class S Prsi contributions each year.

If he is still in employment he could make maximum AVCs for 2024 and 2025.

Regardless of the method he uses to get 2 years of paid contributions, he should remain signing on for Jobseekers credits up to age 66.

Doing this will ensure he remains qualified for treatment benefits and also keeps open the possibility for him to qualify for benefit payment 65. He would need 13 weeks of employment to qualify for BP 65.