Birthday 31 December and PRSI / Actuarial Reduction,

D

DingDing

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I have a birthday of 31st December and looking at retiring at 58, D Stamp employee.

My payroll is weekly so the payroll period will cross the new year of the year I plan at retiring.

If I retire before the 31 December my pension will be acturially reduces WRT my age of 57.


If I retire after 31st December I will not have two full years to convert from D to A stamp.

Under the current scheme I have had some A stamps from pre the public sector employment so 58 should give me the opportunity to get a contributary state pension at some stage.

If the retirement date is on your birthday is this the age thats considered for pension purposes, It talks about age previous birthday in some of the documentation.

Also can I prevent D stamps been applied to the following year as the pay period crosses over the year.

Are there any pitfalls to this approach.
 
If you retire on 31st December when does your public sector employment contract finish ?

Would you be considered to no longer be in class D employment at say 5pm when you leave work, or does your employment contract actually run up to midnight on 31st December.

If it was the case that your employment contract ends at 5pm, you could take up a few hours of employment later in the evening of 31st of December.

If you were no longer in class D employment, this few hours work could gain you 1 class A contribution in your retirement year.

Probably won't work but could be worth checking out, just in case.
 
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Thanks S Class, thats a good idea. So If this worked, How many of my years employment could I convert to A class, given the best possible scenario, that is that work. finishes at 5pm and I get 4-5 hours in on my last day 31st December.
 
Also thinking. There are a lot of bank holidays and mandatory leave days over that time. A couple of years to line up the ducks

The key thing woukd be not to actuarialy reduce the PS pension.
 
If you managed to get 1 class A contribution in your retirement year, then all class D for that year and the previous year would convert to class A credits.

These are credits and don't count towards reaching the 520 full rate paid target.

A person in employment at class D who has a second employment is class J on the second employment.

So you could argue that your class D employment ended at 5pm and then as a non class D employee you were entitled to class A Prsi for a new employment started at 6pm.

If you set up the employment for 31st December and also 1st January the next year, you could hedge your bets.

If the 31st December gets you a class A you could gain an extra year of change of status credits. If it didn't work you would have 1 class A the following year and then sign on for Jobseekers credits.

You wouldn't know if the plan worked until you claim your state contributory pension and find out how your change of status credits were applied. If they didn't allow the 1 class A contribution in your retirement year you could appeal the decision on the grounds that you were no longer class D when you took up the new employment.
 
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Is it correct that if you work up to maximum retirement age that your last day of work is the day before your 65th birthday ?

If this is correct it implies that the full service year ends the day before your birthday.
You might then be able to work up to the day before your birthday in any other year without any loss of pension service.

You might get away with retiring on 30th December and taking up new employment on 31th of December.
 
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