Person decides to defer state pension until age 70 but then becomes unemployed after age 66.
- Thread starter S class
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I have opted to take the state pension at age 66, in a few weeks from now.
I received a letter from DSP asking if I wished to defer my pension. This letter contained a form which required that I specify the date I wished to defer until.
That tends to imply that if I filled in the form with a chosen date, that I was then committed to this date.
If there is no commitment to a specific date surely the form should mearly ask if I wanted to defer and nothing else.
I received a letter from DSP asking if I wished to defer my pension. This letter contained a form which required that I specify the date I wished to defer until.
That tends to imply that if I filled in the form with a chosen date, that I was then committed to this date.
If there is no commitment to a specific date surely the form should mearly ask if I wanted to defer and nothing else.
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Gov.ie says “Once State Pension (Contributory) payments have started, you will not be able to change this date even if you are continuing to work.” Which implies if you have not drawn down the pension you can change the date, but you would have to be within 6 months of the time you change your mind. “You should apply for State Pension (Contributory) no more than 6 months in advance of your claim start date. If you are submitting a late application, your chosen claim date cannot be more than 6 months prior to receipt of claim.”
So, if you don't send the form back, payment of your SC pension will automatically commence on your 66th birthday.
But if you send it back, then payment of the pension won't commence until the date that you state on the form.
The Department's assumption there is that if someone opts to defer their pension then they already know when they're going to start to draw it - which is a pretty big assumption and clearly won't apply to everyone. (I wonder how it would respond to someone who sent the form back signed but without any date being specified.)
As for the interesting question in your OP, I assume that if someone loses their job and applies for JB after their 66th birthday they are indicating that don't want their pension yet as they are meting the conditions for payment of JB (actively seeking employment and fit for work); in those circumstances surely the Department would have to pay JB (and give PRSI credits) otherwise it would be discriminating against someone on age grounds? It will be very interesting to see how it handles both of the issues that you have identified.
Dr Strangelove
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They are still liable for normal Class A PRSI once indicate they want to delay pension drawdown. Indeed they are even obliged to notify employer so that correct PRSI class is charged. So presumably they are treated like anyone else aged under 66 for credits. Not clear about jobseekers benefit though.
I doubt it.
It's not clear to me from the guidance but I would imagine that it is possible to bring forward payment of pension with a change of mind. But once payment start it's irrevocable.
I my case I received that letter from DSP because I applied for my pension before the announcement of the option to choose to defer. Presumably from now on there would be no notification from DSP and it would be up to each individual to just apply at any age up to 70.
An interesting situation might occur.
As you state it would be discriminatory to disallow Jobseekers benefit to a person aged over 66 as they are paying for this benefit at the same rate as a person under age 66.
If a person aged 66 becomes unemployed and claims 39 weeks JB in their 66th year and then decides to take their state pension at age 67, they would qualify for the extra payment for their deferred pension.
They would have have lost out on 1 years payment of 277.30 euro per week.
They would have received 39 weeks payment of 232 euro per week.
14419.60 - 9048 = 5371.60
Extra pension at age 67 = 676
Break even point 8 years.
Some people might have too much time on their hands S Class but I do like the way your mind thinks!!
Des Pondent
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I have been wondering this to, but can't see it happening for a few reasons.
The T&c's for the 65 year old payment say it is only payable until you reach age 66, it doesn't say until you draw your state pension.
One of the conditions for the 65 year old payment is you must have ceased employment, if you opt to defer your pension, would that not indicate you have not ceased employment ?
Any way the full state pension at any age is a lot more the the 65 year old payment, so probably no benefit even if you could claim the 66 year old payment for longer.
The T&c's for the 65 year old payment say it is only payable until you reach age 66, it doesn't say until you draw your state pension.
One of the conditions for the 65 year old payment is you must have ceased employment, if you opt to defer your pension, would that not indicate you have not ceased employment ?
Any way the full state pension at any age is a lot more the the 65 year old payment, so probably no benefit even if you could claim the 66 year old payment for longer.
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I have another query to throw in, im a 61 yr old Garda who was a post 1995 entrant, i,m retired since aged 60 recieving my Garda pension plus a supplementary pension ( paid by Garda) included in my monthly payslip, my understanding is that once i reach pensionable age ie 66 i can apply for my state contributory pension and subsequently justice will not pay the supplementary part of my pension, if i opt to defer my contributory pension say till 70, ( i already have 40yrs prsi class A contributions) then will justice still pay me my supplementary pension till 70. One wonders where i could get answers to this or if it has even been thought of!
I suspect not. The normal rules regarding Supplementary Pension, is that you must avail of any Social Welfare benefits (eg Jobseekers etc) whenever eligible. So I would expect that you would have to take the State Pension at age 66 and then the Supplementary Pension would cease.
Perhaps you should contact whoever is paying your Garda Pension (Paymaster General?). Though I might guess that the issue has not yet been considered.
Dr Strangelove
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Almost certainly not.
Supplementary pension stops when you are eligible for state pension. The decision to delay drawdown is your own business.
A person can claim or deferr their state pension regardless of whether they are in employment or unemployed.
They could claim 65s benefit and at age 66 re-enter employment for 13 weeks and then possibly requalify for Jobseekers benefit as they then have the necessary Prsi qualification contributions.
Dave Vanian
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If someone is a year or two short of PRSI for the full pension, then I think that the combination of the additional PRSI to bring them up to the full amount + the increased base pension amount makes it worthwhile.