Mixed PRSI Contributions, qualifying for pension.

[Free-at-last]

Hi,

I have a couple of questions, I’m hoping someone can help me with

I was a pre-95 public sector employee, before I tmoved to the private sector at 50. I am now retired, signing on yearly for Credits, and will reach 65 in July. I have 523 reckonable paid PRSI contributions and 274 reckonable credited contributions. This puts me in the 15 – 19 yearly average PRSI contributions band. Most of my reckonable paid PRSI contributions are at class A. However, my most recent paid contributions are 52 at class S in 2020 (ARF Drawdown).

First question: will this give me a pension at 66 with 90% based on the rate for this band and 10% on the TCA method?

Second Question: have I any way of qualifying for a pension at 65?
(I’m taking it that the Class S stamps in 2020 will not satisfy the requirement for paid contributions. If so, I reckon I need 13 weeks employment at a minimum of €38 per week. Is this correct?)

Thanks in advance.

 

[S class]

You could qualify for benefit payment 65.
Provided that you have a minimum of 39 class A credits in the calender year of your 63rd birthday you just then need the 13 weeks paid contributions before your claim date. These can be from the calendar year of your 61st, 62nd, 63rd, 64th or 65th birthdays. You might already have paid contributions for one of those years.

You are correct that your class S won't allow you qualify for BP65.

You are correct in your calculation of your pension.

 

[Free-at-last]

Thanks a million for that.
Yeah, I messed up, I should have done the ARF drawdown in 2022. (Missed that one, with all my smartness!)

If I got a job tomorrow, I wouldn't have 13 weeks between now and my 65th birthday. Do you know if I could claim once I'd got the 13 weeks - I.e. a few weeks after my birthday, for the rest of the year?

Thanks again.

 

[S class]

Yes you can delay your claim for BP65 for as long as you like.
The only thing that will happen is that you will loose a few weeks payments.

 

[Free-at-last]

Thanks, again. I wish I had known all this before I took an ARF drawdown. Just shows the value a good pension advisor can/should add.

 

[S class]

You haven't made any major error.
You already have reached the minimum level of 520 paid contributions.
You have continued signing on for credits and these are of equal value for pension qualification purposes, as class S.
Even if you had class S for every year you would still not qualify for BP65 on this basis.
In order to qualify for BP65 using class S you would need to have ceased a class S employment before claiming. Effectively you would need to have had earned self employment and retired from that employment.
Appart from the delay in starting your 13 weeks employment, your plan looks perfect.