PRSI contributions after retirement

[Echelle15]

This is a query on paying PRSI contributions after retirement.

I plan to retire from a local authority when I reach the age of 63 at the end of the year.

I will have worked 18 years in the local authority (joined in 2000) and with Added Years this will give me a pension based on approx. 21 years service.

I will also have a state pension and a private pension from another EU country.

The Local authority pension will be topped up with the state pension when I reach age 66.

How do I deal with PRSI contributions from now on?

 

[Early Riser]

I will have worked 18 years in the local authority (joined in 2000) and with Added Years this will give me a pension based on approx. 21 years service.

I take it from this that you have been paying Class A PRSI and, therefore, your pension will be "coordinated" (with Social Welfare entitlements, such as the Contributory Pension). To bridge the gap between your retirement and state pension age you can apply to your Employer for a "Supplementary Pension", provided you meet the requirements, which essentially are that you are not engaged in insurable employment and not receiving, or entitled to receive, a Social Welfare payment (any "supplementary" payment is, of course, in addition to your basic occupational pension).

To satisfy the latter requirement you will need to apply to the Dept of Social Welfare for Jobseeker's Benefit (or Illness Benefit, if you are retiring on health grounds). If you qualify for Jobseeker's Benefit it will last for 9 months, during which time you will receive Class A credited contributions. At the end of 9 months the benefits will end but you can continue to "sign" for the credits.(The "signing" at that stage should be once a year). You should also then qualify for a Supplementary Pension payment from your employer. If you do this you will maintain your contribution record for State Pension purposes.

 

[Echelle15]

Many thanks , Early Riser. I was aware of the Jobseekers Benefit and the Supplementary Pension but was not aware that PRSI was an intrinsic part of these processes.

 

[Early Riser]

You're welcome, Echelle 15. But just to clarify my own post - it is the application for Jobseekers and the subsequent signing for credits that will maintain your contribution record. The actual Supplementary Pension part is irrelevant for this purpose.