Class S PRSI
Information on Class S PRSI contributions paid by self-employed people.
www.citizensinformation.ie
Post 95 public sector early retirement with an ARF.
- Thread starter bstop
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www.citizensinformation.ie
@sidzer
ARF income is classed as insurable self employment.
This was probably treated this way because a previous government saw a way of getting an easy stream of Prsi revenue from certain retirees.
They couldn't have subjected it to class A as the ARF provider (employer) would have been liable to employers Prsi.
So they applied class S Prsi. This is only applied to the self employed person. In a normal self employment situation there is no other 'provider or employer' involved.
This application is beneficial to certain early retirees as they can gain extra reckonable contributions if they are short of 2080 when they retire.
Other early retires who already have 2080 Prsi contributions are being penalised by having to pay Prsi on what is essentially a pension.
Recently this poster asked about the situation regarding post 95 early retirees and qualification for supplementary pension.
Because ARFs are classed as insurable self employment it is uncertain if they would prevent the payment of supplementary pension. I don't have any idea if this might happen.
If it turns out that ARFs do prevent supplementary pensions, it's absolutely unfair.
Hopefully some poster will confirm that they have received supplementary pension alongside an ARF.
ARF income is classed as insurable self employment.
This was probably treated this way because a previous government saw a way of getting an easy stream of Prsi revenue from certain retirees.
They couldn't have subjected it to class A as the ARF provider (employer) would have been liable to employers Prsi.
So they applied class S Prsi. This is only applied to the self employed person. In a normal self employment situation there is no other 'provider or employer' involved.
This application is beneficial to certain early retirees as they can gain extra reckonable contributions if they are short of 2080 when they retire.
Other early retires who already have 2080 Prsi contributions are being penalised by having to pay Prsi on what is essentially a pension.
Recently this poster asked about the situation regarding post 95 early retirees and qualification for supplementary pension.
Occupational supplementary pension, ARF and "self employment"
Hi all (and *especially* @S class), I'm one of the people contemplating doing the "convert to ARF, draw down €5K per year, bump up COAP via 52 reckonable Class S" dance. I'm still at least 10 years away from retirement so just attempting to get my ducks in a row. I will be entitled to a public...
www.askaboutmoney.com
Because ARFs are classed as insurable self employment it is uncertain if they would prevent the payment of supplementary pension. I don't have any idea if this might happen.
If it turns out that ARFs do prevent supplementary pensions, it's absolutely unfair.
Hopefully some poster will confirm that they have received supplementary pension alongside an ARF.
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As @ S Class has mentioned on another forum, this is only a potential problem if your combined income subject to Class S (including an ARF) is more than €5k.
If your only income potentially liable to Class S is an ARF and the drawdown is less €5k then there is no S Class liability (you are therefore not deemed to be self employed) and can apply to DSP for a refund of any S Class deduction made by your ARF provider.
An argument could also made that an ARF (under or over €5k) is not a form of self employment as it is subject to to a PAYE deduction and you can assign part of your PAYE tax credit to the ARF! Revenue would notify the ARF provider accordingly who is considered your 'employer' in this regard.
If your only income potentially liable to Class S is an ARF and the drawdown is less €5k then there is no S Class liability (you are therefore not deemed to be self employed) and can apply to DSP for a refund of any S Class deduction made by your ARF provider.
An argument could also made that an ARF (under or over €5k) is not a form of self employment as it is subject to to a PAYE deduction and you can assign part of your PAYE tax credit to the ARF! Revenue would notify the ARF provider accordingly who is considered your 'employer' in this regard.