Mixed insurance (prsi) for pro rata old age pension

[getmeoutofhere]

Hi,
I'm not sure if this is correct forum for this query.
Retiring end next year from public sector @ age 61, Class D employee.
Mix of roughly 50% semi state Penson and 50% local authority pension.
I worked for 2.5 years before hand in private sector paying class A stamp.
I am led to believe, reading on here, that:
If, when I retire I work briefly as a class A employee, say end of next year, I can convert next years and this years D stamp to an A stamp.
That will leave me with 4.5 years Class A in total.
Then, I can the following year buy, at a rate of 6.6%, a year, or half a year, of Class A stamp and then I would be entitled to a pro rata old age pension @66.
I wonder am I correct?
and if I am , will that pro rata pension be deducted from my class D public service pension? (in which case why would I boher...)

Thoughts?

 

[S class]

You are correct that if you take up class A employment, you will gain change of status credits for the 2 years you mentioned.

These will not be class A stamps.
They are Reckonable change of status credits.

These are not counted towards your target of 260 full rate paid stamps to qualify for a pro rata pension.

The change of status credits are only counted if you reach the 260 full rate paid target.

There are different ways to gain extra full rate paid contributions.
The easiest and cheapest option is 5k drawdowns from an ARF.

You have the potential to reach the 260 level or you could reach the 520 full rate paid level if you defer claiming your contributory pension beyond age 66. This would be financially beneficial for you as you would get a much higher pension..

There will be no loss from your public sector pension if you manage to claim a portion of the COAP

Check out this thread

AVC information for pre 95 Public Sector employees.

Can these employees make AVCs ? Yes. They can make AVCs based on non pensionable wage payments and to make up for any shortfall if they don't have the full 40 years service at retirement age. They can also make AVCs to fund for the revenue allowed 100% surviving spouses pension. The public...

www.askaboutmoney.com

You can also aim to qualify for Benefit payment 65.

Reply if you want more information on any of this.

 

[getmeoutofhere]

Thanks S Class,

I'm interested in this:
'The easiest and cheapest option is 5k drawdowns from an ARF.'

Can you expand please?

 

[S class]

If you have AVCs, these can be used to buy an ARF when you begin your public sector pension.

If you drawdown a minimum of 5k per year from your ARF you will gain 52 full rate paid class S stamps per year.
For a 5k drawdown you would pay Prsi of approximately €200 euro per year and this gets you the 52 class S stamps.

This can be done up to maximum age 70.

 

[jfrank]

I certainly would not argue with S Class on matters of social insurance (he is a brilliant contributor to this forum!) but I thought once you reached the retirement age you were no longer liable for PRSI??

 

[S class]

thought once you reached the retirement age you were no longer liable for PRSI??

You are liable to pay Prsi up to the date you claim the COAP.
This can be any time from age 66 up to age 70.

If a person is not eligible for the COAP they are liable to pay Prsi up to age 70.

@getmeoutofhere could choose to deferr their COAP beyond age 66 up to the date they reach 520 paid stamps.

 

[getmeoutofhere]

If you have AVCs, these can be used to buy an ARF when you begin your public sector pension.

If you drawdown a minimum of 5k per year from your ARF you will gain 52 full rate paid class S stamps per year.
For a 5k drawdown you would pay Prsi of approximately €200 euro per year and this gets you the 52 class S stamps.

This can be done up to maximum age 70.

Hi

Back on this one.

I have discovered I have 112 A1 contributions from 1984/1985.
I then have almost 40 years of D1 contributions since.

Intending drawing down from an ARF for about 3 years, so I'll have over 260 A1/S1 contributions.

I've looked at this site https://www.citizensinformation.ie/en/social-welfare/older-and-retired-people/pro-rata-pensions/ regards a pro-rata- pension and its coming out at like €33 per week...which may not be worth the effort.

I think my calculations are correct?
Step 2: Use this formula to calculate your pro rata pension rate

(A x B)/C

• A = the notional rate of pension (see Step 1 above to calculate the notional rate of pension)
• B = the number of full contributions
• C = the total number of contributions (full and modified)

A = €289
B = 260 (lets assume)
C = 2288 (39 years D1 + 260 S1/A1)


Anyone assist me?

 

[S class]

Your calculation is reasonably accurate.

Could you manage to reach 520 paid contributions up to age 70 ?

If this is possible you would be guaranteed a minimum of 25% of the COAP (€72.32).

You would actually get more that this when you add in change of status credits + pre entry credits.

You could reject the pro rata pension at age 66 and defer your pension claim up to age 70 if necessary.

Because you could then achieve a much larger deferred pension you could break even after another few years.


P.S. If you retire from class D employment before age 62, you would be able to get an extra 416+ paid contributions up to age 70. These added to you current 112 class A will get you to the target of 520 fully paid contributions.

 

[ardmacha]

I asked this question before but never got an answer.
I had 3 and a bit years A1 contributions and 35 years of D1 contributions since.
I also had 3 years UK credited contributions and a few weeks of real ones. I have since purchased additional years, enough to get a UK pension.
Does this oblige the Irish authorities to pay me some small amount or should the UK authorities count my 3 years? I'll be living in the ROI, most likely. I just want to get the 3 years in there somewhere.