Job Sharing & PRSI stamps impact for pension

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TheJackal

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My wife is considering a job share - primary teacher - they only offer week on/week off in her school.

So in a given year she'd only be getting 26 PRSI stamps, not 52. This would in turn likely mean a lower State Pension Contributory (SPC) upon retirement.

She is on the pre 2013 scheme, so pension based on retiring at 65 and half final salary.

By my understanding, if she has 40 years service her pension will be SPC + balance paid by employer = 50%

So if final salary of 70K and full PRSI stamps, you get say 15K SPC + 20K employer = 35K annual pension

But if you were missing stamps from Job Sharing your SPC portion would fall to say 14K. But she's still entitled to 50% pension, so would this change to
14K SPC + 21K employer = 35K annual pension

This look right?
 
I presume the employer ( public sector) would have to make up the shortfall, via the supplementary pension.
The supplementary pension is paid to public sector workers, in your wife's scheme, if their social welfare payments do not bring them up to the full value of their final pension.
So, basically, your final calculation is correct. However, she would have to apply for three seperate pensions.
The Public Sector pension, the Contributory State Pension and the Supplementary pension. She is only entitled to the supplementary pension when she has exhausted her social welfare entitlements and still doesn't hit the 50% of final salary target.
Another point to remember is that when she job shares, she will be, effectively, reducing her number of years worked for the public sector pension.
Each job share year, only counts as half a year of pensionable service. So, depending on how many years she has to go, it might be difficult to hit the full 40 years of service.



I'm surprised that part time workers are punished in this way. Its not so bad for your wife, as she can claim a supplementary pension from her employer to make up the difference. But job sharing employees working one week on, full time, and one week off, seem to be at a significant disadvantage to those working 2/3 days a week.

Part-time work and social insurance (PRSI)

Explains how part-time work can affect your entitlement to social insurance payments.
www.citizensinformation.ie www.citizensinformation.ie
 
TheJackal said:
Thanks @Allpartied

I know some schools do Wednesday to Tuesday job shares to avoid the half stamps, as you're then always in part of a week
Click to expand...

That would make it much simpler for her, as she would get the entitlement to full state pension and, probably, wouldn't need to go through the rigmarole of a supplementary pension application.
 
TheJackal said:
Thanks @Allpartied

I know some schools do Wednesday to Tuesday job shares to avoid the half stamps, as you're then always in part of a week
Click to expand...
The prsi week commences on 1st January so depending what day of the week that is depends on whether you generally get 1 or 2 contributions working Monday to Friday.
However this year 1st January is a Monday and that's the one generally to be careful of in this regard.

I job shared with the Dept of Ed for 4 years ( all be it ,it was Thursday to Wednesday) and always got 2 contributions.
The Dept of Educatiion pay fortnightly and therefore advised me that I would always get 2 contributions.
She should check it out with Deptt of Education of union.
 
This page might be of assistance. As Meath Lady said, the PRSI week begins on 1 January, regardless of what day it falls. So your wife might not miss 26 contributions every year (it so happens that in 2024, she would).

Part-time work and social insurance (PRSI)

This page explains how part-time work can affect your PRSI contributions.
www.citizensinformation.ie www.citizensinformation.ie
 
Next year if she were to lose it would only be from September to December incl, assuming she commences job sharing in the new school year.

The next 1st of January that will be a Monday won't be til 2029 so the intervening years she would definetly get 52 prsi contributions .
However as previously stated I think she would get 52 each year as we are paid fortnightly and Dept don't really care which days you work in the fortnight once you work 50%.
 
Can people class D who are now retired and job shared and we're only given 26 stamps get it corrected if the did week on week off .Or could they make a case to retrospectively by back the other 26 weeks as voluntary contributions at class A to help them qualify for contributory pension or supplementary pension
This person has only 12 yrs service as a class D teacher
Also has 1.5 yrs as class A in previous job .
Does not seem to qualify for contributory pension
 
They should get class A employment for a minimum of 38 euro per week for a minimum of 1 week. This will get them 1 paid class A contribution.
They might then get change of status credits which would convert 2 years of class D contributions to class A credits.

If their current total of combined paid class D and paid class A contributions is at least 520 they could make voluntary contributions.

I don't know what will happen if they make voluntary contributions for pdevious class D years. The only way to find out for sure would be to apply to make voluntary contributions and see if they are billed based on class A or D. If they are based on class D they can opt not to pay.

If they get 1 week of class A employment as suggested they could then pay voluntary Prsi based on class A from now until age 70.

If they can get 260 reckonable paid contributions they will qualify for a pro rata pension.

If they can get 520 reckonable paid contributions they will qualify for a pension based on the total contributions calculation method.
 
I have checked with this person and though the worked mon ,Tue and half day Wednesday for 14 yrs they are recorded as having 26 stamps at class D .
As they only have 12 yrs service pension is very small .Now 66yrs and as you say will try working 1 day a week to put up class A for 3.5 yrs .
This combination with previous 1.5 yrs class A should get5 yrs at Class A .This person has been a carer for mother but never signed on or registered as carer or put up credits .So I am wondering if there is any way he can retrospective purchase the 26 weeks of the job sharing years X 14 to improve his chances of getting a contributory pension at 70 .
If he cannot ,I am hoping if he gets to 5 yrs class A that he could combine with class D and get credit for his years caring to improve his financial situation.
Any info/advice welcome
 
Did he retire from the class D employment at age 66 ?

If he did and starts getting class A contributions he would get change of status credits at A class for this year and last year. This will increase his ratio of class A compared to class D.

He needs to get 5 years full rate paid contributions.
These can be class A or voluntary contributions.

If he currently has 7 years class D and 1.5 years class A, he would need to work at class A for another 1.5 years to reach the 10 years of paid Prsi in order to qualify for voluntary contributions. At that stage he could cease employment and make voluntary contributions to age 70.

He will the qualify for a pro rata pension, but this will be very small.

He should get his Prsi record for Dept of Social Protection to get the exact number of contributions.

I don't think that he can have class A credits while he was working at class D.
I think if he succeeded in getting backdated credits that these would be at class D.
If this was the case they would not gain him any extra in his contributory pension.
 
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Thanks for getting back .How His total service at class D was 12 yrs including the 14yrs job sharing .he took that pension at 60 yrs .He is v late trying to sort contributory pension and has 1.5 Class A in private sector but will now hopefully will start paying class A now until 70 back date it for last year .I think that would give him 5.5 class A .12 yrs class D .
I think as he has been caring for his mother for the 18 yrs ,he may be able to combine class A (once he has over5 yrs ) with classD to allow him get credit for his yrs caring ,but I'm nort sure
He never claimed social welfare,signed on for credits ,or carers allowance and is now realising that he should have claimed all of the above .
 
Did he reach age 66 after 1st January 2024 ?

I was assuming that he was just recently aged 66.

I have just realized that maybe he is to old to be in the Prsi net until age 70.

If he reached age 66 before 1st January 2024 he cannot make any more Prsi contributions.
 
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Yes turned 66 last July 2023 but has not claimed or was not entitled claim contributory state pension.I was hoping that as he hasn't claimed yet he could put up class A stamps now to help him access contributory pension .

He does a small bit of farming so I'm assuming he is registered as self employed,can he retrospectivly pay class A stamps
 
He is to old to get any more class A.
Has he paid class S Prsi (self employment) for the years after he retired from class D.
 
Chatterbox.
Has this person received a record of contributions from the Dept of Social Protection.
If not I would recommend requesting some to check what exact contributions he actuslly has.

I think that if he worked every Mon Tues and Wed for 14 years he should have a contribution for each working week and if he had a permanent contract that should also include all holidays.
As S class said he may also have S contributions if he paid SW after retiring from teaching.
 
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