I am a bit confused about the situation with coordinated pensions, preserved benefits and PRSI so hopefully someone can clarify this
Let's say that someone starts working in the public service post 1995 but pre 2004. They pay class A PRSI and have a pension co-ordinated with the contributory old age pension.
This individual starts work in the public service at age 20 and leaves at age 40 earning 60k. They never work again and don't claim social welfare or sign on for PRSI credits. They live off savings, then at age 60 they claim their preserved benefit pension.
If they make a voluntary PRSI contibution from age 40 to 60 will they then receive a pension composed of their public service pension plus supplementary pension until they reach COAP age of 66 or 68 etc.
PRSI may be due on the interest from their savings but as far as I know these contributions wouldn't count towards the COAP. So they would need to pay voluntary PRSI as well as "mandatory" PRSI.
If they did pay the voluntary PRSI from age 40 to 60 what would their pension at age 60 be assuming that the full COAP at the time is 12000.
I think it is as follows:
((20/80)*(60000-2(12000)) + 12000
= 21000
Does anyone agree? How are my calcs and am I right about the supplementary pension, voluntary PRSI etc.
If the COAP is cut it looks like the pension suffers. Eg if it were to be cut to 5000 I make the total pension as 17500 rather than 21000.
Thanks!
Let's say that someone starts working in the public service post 1995 but pre 2004. They pay class A PRSI and have a pension co-ordinated with the contributory old age pension.
This individual starts work in the public service at age 20 and leaves at age 40 earning 60k. They never work again and don't claim social welfare or sign on for PRSI credits. They live off savings, then at age 60 they claim their preserved benefit pension.
If they make a voluntary PRSI contibution from age 40 to 60 will they then receive a pension composed of their public service pension plus supplementary pension until they reach COAP age of 66 or 68 etc.
PRSI may be due on the interest from their savings but as far as I know these contributions wouldn't count towards the COAP. So they would need to pay voluntary PRSI as well as "mandatory" PRSI.
If they did pay the voluntary PRSI from age 40 to 60 what would their pension at age 60 be assuming that the full COAP at the time is 12000.
I think it is as follows:
((20/80)*(60000-2(12000)) + 12000
= 21000
Does anyone agree? How are my calcs and am I right about the supplementary pension, voluntary PRSI etc.
If the COAP is cut it looks like the pension suffers. Eg if it were to be cut to 5000 I make the total pension as 17500 rather than 21000.
Thanks!