Won't you get the full 52 class stamps in 2032 if you pay over the 5000 in the first few months (or the 650 PRSI) - I thought it was all or nothing?
This is what I thought until recently.
Having read other posters experiences, I am now inclined to think that a person can only get 1 reckonable class S for each week up to their retirement date.
It's all or nothing as regard getting 52 or zero class S contributions from an ARF. But some of these might not be Reckonable for COAP.
Again this is not certain, so you could for instance apply for the COAP at age 66. You will then know how many of your class S for 2032 are counted as Reckonable.
What I am 100% certain of is that in your retirement year, if you drawdown 5k from your ARF you will see 52 class S on your Prsi record but only the ones relating to weeks beyond your pre 95 employment will be counted.
So there is a precedent that not all your class S contributions are reckonable.
A self employed person with 5k + income in the year of their COAP is exempt from paying Prsi in that year.
This works because they would normally pay Prsi in the following year under self assessment rules.
So this person gets no class S for their retirement year.
ARFs are an anomaly. They are subject to class S Prsi but it is deducted under PAYE rules. If you take monthly drawdowns you get 4 or 5 class S per month. You are exempt from paying Prsi for the month your COAP begins. You are subject to class M, which is free of charge and not reckonable from your claim month forwards.
So presumably the person paying monthly regardless of the total being over 5k or not will only have class S Prsi on their Revenue.ie record for the months prior to their COAP claim.
Posters who have made 1 yearly drawdown have reported that they only have 1 month's Prsi on their Revenue.ie account. This happens even if they have paid over 5k. So it could be the case that only 4 or 5 class S might be counted as Reckonable.
The 52 class S for the receiver of a single drawdown does not appear until the following year. So when the COAP calculation is being made would the number of class S on the Revenue.ie record be what are using in the COAP calculation?
PS
This is what AI states
if I claim COAP on 1st july and I have previously drawndown 5k from my ARF for the year and had 52 class S applied to my Prsi record. How many reckonable class S contributions will be counted in my COAP calculation.
"If you claim your Contributory State Pension (COAP) on July 1st and have already met the €5,000 threshold from your Approved Retirement Fund (ARF) for that year,
52 Class S contributions will typically be counted for that final partial contribution year. [
1]
How ARF Drawdowns and Class S PRSI Work
- Annual Attribution: Drawing down a minimum of €5,000 in a calendar year from an ARF attracts a liability for Class S PRSI, which the Department of Social Protection treats as a full year's worth (52 weeks) of contributions on your PRSI record once satisfied. [1, 2]
- Partial Year Claims: PRSI records for the self-employed (Class S) are credited on an annual basis rather than split pro-rata week-by-week upon retirement or pension drawdown mid-year. If the €5,000 threshold is reached and the 52 contributions are applied to that year's record prior to your claim date, the full 52 contributions for that year remain reckonable in the calculation. [1, 2]"