PRSI Classes

T

thebhoy

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ive been employed in the public sector since 1985 and i am on the a1 prsi class
is this the correct class for me
 
Normally people employed in the Public Service are Class D , unless they joined the Public Service after April 1995 when they would typically be Class A.
So if you have been employed in the Public Service since 1985, I would have expected that you would be Class D.
 
There were a number of public sector schemes from that era which were Class A PRSI (coordinated pensions). There was the VHSS scheme covering public voluntary hospitals ( St. Vincents, etc) and the NHASS covering Section 38 agencies. I think there were others as well. I don't know about local authorities. I assume you were a member of a pension scheme since 1985?

So it depends on which area of the public sector you were employed in. Were your colleagues on Class A or Class D?
 
I work for a local authority. ( Donegal co co ). one of my colleagues who has forty years service this year, is also on class A
I know that class A pay 4 percent, while class D pay 0.9 percent. but was wondering is there a difference in benefits between the two

THANKS FOR THE REPONSES SO FAR
 
If you have been paying Class A all your working life since 1985 you will qualify for the State Pension - probably at the full rate (depending on your age and total PRSI record). Someone paying Class D in the same circumstances would not qualify for a State Pension.
However, there are usually two different Occupational Pension Schemes to compensate for this difference. People on Class D PRSI qualify for a higher final Occupational Pension but no State Pension.

Are you a member of an Occupational Pension Scheme through your job? If so, what are the pension benefits in the Scheme? What is the normal retirement age in your Scheme? It is possible that you are a "non-officer" or "non-established state employee", as mentioned by becky above. If so, your normal pension age would be 65, as against 60, and Class A PRSI would be correct.
Did you have to pay a contribution from your salary towards the Scheme (apart from 1.5% for Spouses and Children)?
 
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PENSION WILL BE BASED ON FINAL SALARY
was given these notes on calculations

lump sum is calculated as follows
PENSIONABLE REMUNERATION X NUMBER OF YEARS SERVICE X 3/80

annual pension is calculated as follows
A CLASS annualised old age pension x 3.333333 x numder of years service x 1/200
excess above annualised old age pension x number of years service x 1/80

D CLASS pensionable remuneration x number of years service x 1/80
 
Both of those are correct, ie, they quoted you how an occupational pension for someone in a Class A PRSI coordinated scheme is calculated and how an occupational pension for someone in a Class D uncoordinated scheme is calculated. But did they confirm to you that you specifically are in the Class A coordinated scheme category? You should have been given details of your own scheme at some stage, eg, a booklet or explanatory document.

If you are in a coordinated scheme you will get a lower Occupational Pension but you will be eligible for a State Pension. For someone retiring with full service at 66 it makes little difference in terms of total annual pension. It is a little more complicated if retiring before State Pension age.
What is your normal retirement age? Do you have to be 65 or can you retire from age 60? At what age are you proposing to retire?
 
normal retiring age is 65. but i can retire at 60 with a reduced pension
was looking into working a 4 day week which i can do on reduced pay, and was checking if it would affect my pension
but have been advised it wont affect it as i will have 44 years service at normal retiring age. while looking into this i noticed that i was on class A prsi and not class D, as there is a difference in the percent you have to pay in the two classes, was wondering if i have been a higher rate than i should have ?
 
If you started in 1985 and the normal retiring age in your Pension Scheme is 65 it would seem to indicate that you are classified as a "non establised public service employee". If so, it would mean that you were on the correct PRSI rate - A. All new public servants pay this rate since 1995 but before that date "established" grade entrants went on Class D/B PRSI and "non- established" grades went on Class A.

You will be eligible for a State Pension in addition to your Occupational Pension - the combined amount should be the same as for a Class D equivalent. The difference is the extra PRSI you paid over the years. Also the Class B/D "established" person could retire at 60 on a full pension - no reduction.

Yes, 40 years max count towards your "pensionable service". So going part-time for your last few years should make no difference to the amount of pension - as long as the combined total of your service amounts to 40 years. Also 40 years of Class A PRSI means eligibility for the full rate of State Pension.
 
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I'm guesstimating that you're around 58 years old now. You've about 37 years done since 1985. Part-time service in public service pension schemes counts as less years. So, for example, if you went on 50% hours, you'd need to work for 2 years to get an extra year in the scheme, but your benefits would continue to be based on your full-time salary.

So if you wanted to go to half-time working hours from now, you'd need to work for another 6 years to get to the full 40 years in the scheme.
 
thanks everyone ( especially early riser ) have a far better understanding of it now
really appreciate all the feedback
 
@thebhoy
Just a couple of points.

When you retire at 65 on your occupational pension you will still have to wait a year for your State Pension. As you intend to keep working in the meantime, you should be eligible for the new Benefit Payment for people at 65. But this is currently about €208 whereas the State Pension is about €253. You are eligible for a Supplementary Pension from your current employer to make up the full difference between these two - as you will have 40 years service. Indeed, if for any unlikely reason you were denied the over-65 payment, the Supplementary from your employer should make up the full amount. You have to apply for this Supplementary Pension. Each employer has their own arrangement but there should be a form for you to complete. It is a condition for the Supplementary that you are not working elsewhere.

Also, just to note. If you were to retire at 64 years and 3 months (on a Preserved Pension) you could apply for Jobseekers Benefit (based on your Class A PRSI). The JB (€208) lasts 9 months which would take you up to the age for your Occ Pension and the over-65 payment. Taking the Preserved Pension means it is not paid until 65 but there is no actuarial reduction. In this event, you would still be eligible for a Supplementary Pension at 65.
 
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Early Riser said:
@thebhoy
Just a couple of points.

When you retire at 65 on your occupational pension you will still have to wait a year for your State Pension. As you intend to keep working in the meantime, you should be eligible for the new Benefit Payment for people at 65. But this is currently about €208 whereas the State Pension is about €253. You are eligible for a Supplementary Pension from your current employer to make up the full difference between these two - as you will have 40 years service. Indeed, if for any unlikely reason you were denied the over-65 payment, the Supplementary from your employer should make up the full amount. You have to apply for this Supplementary Pension. Each employer has their own arrangement but there should be a form for you to complete. It is a condition for the Supplementary that you are not working elsewhere.

Also, just to note. If you were to retire at 64 years and 3 months (on a Preserved Pension) you could apply for Jobseekers Benefit (based on your Class A PRSI). The JB (€208) lasts 9 months which would take you up to the age for your Occ Pension and the over-65 payment. Taking the Preserved Pension means it is not paid until 65 but there is no actuarial reduction. In this event, you would still be eligible for a Supplementary Pension at 65.
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good to know that, very hard to understand it all without help, but you have been brilliant in explaining it all
thanks again and keep up the good work
 
Early Riser said:
Also, just to note. If you were to retire at 64 years and 3 months (on a Preserved Pension) you could apply for Jobseekers Benefit (based on your Class A PRSI). The JB (€208) lasts 9 months which would take you up to the age for your Occ Pension and the over-65 payment.
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So a person gets a double benifit by working the (tax) year of their 63rd birthday ? They get enough stamps to get welfare for 9 months and also they have passed the 65 to 66 requirement to get paid the 65 payment ?
 
elcato said:
So a person gets a double benifit by working the (tax) year of their 63rd birthday ? They get enough stamps to get welfare for 9 months and also they have passed the 65 to 66 requirement to get paid the 65 payment ?
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I don't know the answer to that, elcato. But in this instance it does not make any difference. If thebhoy is denied the over-65 payment he is eligible for the full Supplementary Pension from his employer - which in his case is equal to the value of the State Pension - €253.

Edit: In any event, and subject to correction, I believe both of the JB claim and the over-65 claim are likely eligible. The Relevant Contribution year for the JB is the second last complete tax year prior to the JB claim. The Governing Contribution year for the over-65 claim is the second last complete tax year prior to the claim. The relevant contribution year for the two claims is different.
 
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