Can I get a PS pension and an OACP

[Torregolf]

I have been working in PS since 1988. I also have some PRSI contributions that are reckonable for the OACP. I am a Co Director but do not receive any salary from the Company. My Q is should I take a salary from the Company and what is the minimum I would need to receive in order to pay a PRSI contribution which would count towards the OACP. I am aware that I will also have to pay PAYE at top rate and USC so I don't know if it would be worth it. I am 54

 

[Protocol]

You will have 52 PRSI conts each year from the PS.

So with other employment, you are suggesting that it might be possible to have extra PRSI conts, class A.

The question is - will the system allow you to have more than 52 pa?

 

[Joe_90]

I think that if you are non A class you can't actually pay Class S or A while paying a CS rate.

If you are class A in CS then it does not matter.

 

[Gerry Canning]

Torregolf.
1. You have 27years since 1988@52 = 1404 contributions from private sector ,I presume you are still working there ,whilst having a directorship? If so you are still making OACP contributions.
Another 13 years PS contributions will leave you @ max OACP .

2. I think (not 100% sure) that if you are NOT paying normal PS contributions from your work you need to pay 500 per year to ensure you are (stamped) for pension.

3. I don,t think taking salary from Company will therefore impact on OACP.

Protocol
Am nearly sure no-one can have over 52 per year.

 

[Jon Snow]

Torregolf.
1. You have 27years since 1988@52 = 1404 contributions from private sector ,I presume you are still working there ,whilst having a directorship? If so you are still making OACP contributions.
Another 13 years PS contributions will leave you @ max OACP .

2. I think (not 100% sure) that if you are NOT paying normal PS contributions from your work you need to pay 500 per year to ensure you are (stamped) for pension.

3. I don,t think taking salary from Company will therefore impact on OACP.

Protocol
Am nearly sure no-one can have over 52 per year.

I think you've misunderstood the OP Gerry.

PS is public sector, and if OP is there since 1988 they will be a Class B/D contributor meaning they have no reckonable contributions for those 28 years.

The OP does have some contributions prior to 1988 and seems to be asking if they can double up on entitlements at retirement by having contributions at class A/S between now and then. I don't know the answer to that, but I hope as a taxpayer (albeit a civil servant myself) that the answer is no...

 

[Joe_90]

A class D/B contributor can't pay class A or S which a class D/B contributor.

In an odd twist older retired civil servants Gardai for example who took up private employment/ sole trades after retiring paid A/S and qualify for a COAP on top for their state pension.

Great little country.

 

[Torregolf]

Yes Jon, that is the question I'm asking. Have the laws changed as I spoke with a retired Teacher that had a 2nd job and got both pensions.

 

[Jon Snow]

Yes Jon, that is the question I'm asking. Have the laws changed as I spoke with a retired Teacher that had a 2nd job and got both pensions.

As Joe has said above, if you retire young enough from a PS job, and THEN (ie. while retired and already in receipt of the PS pension) continue to work in a class A/S employment and build up a contribution record, you can create an entitlement. But again that's not what you're proposing.

 

[BlackandBlue]

As Joe has said above, if you retire young enough from a PS job, and THEN (ie. while retired and already in receipt of the PS pension) continue to work in a class A/S employment and build up a contribution record, you can create an entitlement. But again that's not what you're proposing.

Can a civil servant paying B/D take a part time job and pay A1 and thus earn a state pension (provided they satisfy the minimum contribution requirement)?

 

[ppmeath]

I think you've misunderstood the OP Gerry.

PS is public sector, and if OP is there since 1988 they will be a Class B/D contributor meaning they have no reckonable contributions for those 28 years.

The OP does have some contributions prior to 1988 and seems to be asking if they can double up on entitlements at retirement by having contributions at class A/S between now and then. I don't know the answer to that, but I hope as a taxpayer (albeit a civil servant myself) that the answer is no...

It's not doubling up on entitlements Jon. The OP is pre 1995 and is paying 6.5% (afaik) and on top of that the pension levy towards his DB entitlement.

The COAP is a separate entitlement based on PRSI contributions. If he already has PRSI contributions and now wants to add to those then he will have to contribute to the scheme for an entitlement and as he says he will then pay tax/pris and usc on this.

@BlanckandBlue. Yes, you can do this if you are pre 1995. The best thing is to contact the SW and ask them to calculate what you need for entitlement.

 

[Joe_90]

@BlanckandBlue. Yes, you can do this if you are pre 1995. The best thing is to contact the SW and ask them to calculate what you need for entitlement.

Please come back to us with the reply they give as the advice I have received is that you can't pay class S or A contributions while on Class B/D.

 

[ppmeath]

Please come back to us with the reply they give as the advice I have received is that you can't pay class S or A contributions while on Class B/D.

Sorry Joe, let me be clearer, I was referring to when B&B retired as a pre-1995 worker (as per Jon Snows post), he can then take up a part-time job and pay a Class A contribution. I didn't realise he was asking if he could take a part-time job while still in the PS job and make different contributions. Apologies for the misunderstanding.

 

[Dan Murray]

Hi All,

So just for the avoidance of doubt, in relation to a civil/public servant paying reduced rate contributions, can some knowledgeable person please confirm whether such a person can:

(a) early retire and get a part-time job to build up Contributory Pension (CP) credits?
(b) have a separate source of income (whilst employed in the civil/public service capacity) and build up CP credits in addition to his/her public service pension entitlements?

 

[ppmeath]

(a) If you retire early and you take a part-time job where you pay a Class A PRSI stamp - you will be contributing to a range of social welfare entitlements, including a contributory state pension, however, whether or not you qualify for that pension depends on how may stamps you have, in order to check this out you need to contact your local SW office and/or check out the details here.

http://www.welfare.ie/en/pages/qualifying-for-state-pension-contributory.aspx


(b) That depends - will you be self employed or working for another employer?

If you will be self employed then I am sure that there is a facility where you can pay the Class A stamp, if not and if you are working for someone else, then you should be paying a Class A contributory PRSI stamp. You can contribute by paying a Class A stamp, however, it's your eligibility when you reach pension age that is the question.