PRSI Rate

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Lancealot

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Hi My wife has been paying the A1 rate instead of D1 .. is she entitled to a refund if there is an appreciable difference.
 
Why do you think she should be on class D? Was she recruited before 1995?
 
From August 1999 to date is covered by the modified regulations para 83(1) (b) of s.i 312 1996 and therefore insurable under SWActs at the modified rate of class D ....
MY own view is that she can get a limited refund ... can that be calculated .. is it difficult ...
 
Has anyone been able to recover overpayment? Is there a formula for calculating a refund?
 
I don’t understand what you are referring to in post 3. Is your wife working in the public sector and was she recruited before 1995? Has she ever been on Class D?
 
No. She is now in the public service. For some reason her previous employement was rated A1 and she continued into her public service employment.
 
So she was hired prior to that date .. 1995... and is therefore entitled to be on the D rate as in post 3 above.
where does that leave her with regard to entitlement for a refund ....
 
It’s not as black and white as that. She could start by asking her current employer why she isn’t on Class D. But they might just have continued with Class A if her previous employer had her on Class A. She might have to make enquires to her previous employer too. It is possible there is a very clear reason why she wasn’t ever on Class D.
If there is any doubt about the correct Class of PRSI, then the Scope section of the Dept of Social Welfare will decide.
If her Class of PRSI is changed, there are a lot of other consequences, as it affects her superannuation payments too.
 
So the Scope Section have come down on her side and their decision is that ... from August 1 1999 to date ... she is covered by the modified regulations .... AND was therefore insurable under the S.W ACTS at the modified rate of PRSI CLASS ‘D’ ... and as above in post 3 ...
So my question is .. what does this mean ... ?
My understanding of PRSI rates is 0
 
To Answer your Query ,She can claim back up to 4 years anything more is lost wait until she is put on D stamp then apply, Do you know was it Scope who decided she should be on PRSI Class D normally employer will help with claiming it back if done through Scope, Just be aware she will loose all of the years back dated not just the 4 she was refunded
Once she is back on her D stamp apply for her PRSI stamp record , I know how the above can happen even after 1995 but I am not going into the reasons here,

she will get back the last 4 Years prsi if she looks at her P60 for last 4 years ,
Just a few things to be aware of
(1) The should stop around 2% for the D stamp unless the started lately the don't
(2)when they brought in the PRSI A1 stamp the employee PRSI A1 stamp was aroun d
7% an employees PRSI D stamp was around 1.96 % as part of the agreement at the time people who were put on the PRSI A1 stamp got 5% more than the people on a D stamp ,
(3 ) What the did was Devided A D stamp salary by 19 and multiplied By 20 to get the higher salary for the PRSIA1 ,

I would expect salaries will just change the rate of PRSI back to around 2% and not change salary back ,
(4) There is a good chance she will finish up with 5% in her salary,
(5) When she retires this is worth 5% extra lump sum
(6) 50% of final salary weill give her an extra 2.5% in her pension for the rest of her life don't over do it,;)
 
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Yep... the deciding officer made the call based on a query I put out .. I can’t remember when .. this info you have is ‘killing’ her right now .. I know that she herself queried it a long long time ago .. she can’t understand what I just told her ... having read it .. that from January 2010 you can only retro 4 years. That’s 11 years lost ... and now 8 years later she will only get 4 ...
that was a Scope Section quote in post 3 ... the decision was made in her favor...
What do you mean she will lose all the years back dated .. not just the 4 ...
Thanks for your time on this ...
 
Her employer should be able to help with this. I was in a similar position a few years ago. It was possible to go back more than 4 years. But it was complicated. The recent 4 years were dealt with separately. Her superannuation payments will have to be revised too.
Overall she has overpaid PRSI, but has underpaid for her superannuation. But the overpayment for PRSI will be significantly more then the underpayment of superannuation. They will also look back at anything she claimed through PRSI, that she wouldn’t have been entitled to as a Class D (such as dental benefit).
 
Thanks for that POC ... RETIRED2017 post has some info that we are trying to get our heads around ... Question for you POC ... the decision by Scope department in favour of my wife is now “written in stone” ... can she now go back to the deciding officer and ask for the decision to be implemented by the other relevant department and can she ask that retrospection be looked at as the funds involved are ‘life changing’ ...?
 
Lancealot said:
Thanks for that POC ... RETIRED2017 post has some info that we are trying to get our heads around ... Question for you POC ... the decision by Scope department in favour of my wife is now “written in stone” ... can she now go back to the deciding officer and ask for the decision to be implemented by the other relevant department and can she ask that retrospection be looked at as the funds involved are ‘life changing’ ...?
Click to expand...
(1) She is getting 4 years Back
The paid her 5% extra a few years later Employees PRSI was lowered so she came out slightly better than a D siamp employee,
Retrospection may not work out in her favor if the start unwinding things the will possibly say she got 5% to cover the extra prsi
at present APRSI D stamp is around lets say 2% to 2.5%
At present a PRSI A1 stanp is around 4% so the gave her 5% to pay the difference which is around 2% or less for a good number of years,
I suspect but I need to cross check if they look at the pension part she owes them money the reason being a D stamp pays more contributions , she would not have paid contributions on the state contributions part,
If she was to retire in the morning final salary 50000 K
D stamp would get 50% which is 25000 K he would have to pay into that,
A PRSI A1 would also get 50% 25000 K State PRSIA1 pension is around 12400 you have already paid for this trough your PRSIA1 she would have paid pension contributions to make up the balance which is around 13600 K it is not exactly as stated but you get my drift D stamp pay more because they have to fund the whole 25000
Both would have to pay the same amount for there lump sum ,
It is not as simple as outlined above just cross check if pension contributions on her first few D stamp pay slips and the pension contributions on last few PRSIA1 pay slips it will not be as big as i am saying ,
Employer will want to get it sorted employee normally comes out the best in cases like this,
 
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She needs to get her employers to help with this. Some of the money and paperwork can be sorted out by them. I suggest she contacts her HR and Salary departments. She may need to provide copies of the Scope decision. As someone said already, one of the first things they can do is to make sure she is on Class D from now on.
Her employers may have dealt with this before. As far as I recall, this misclassification of PRSI came to light a few years ago, and mainly affected teachers.
 
Lancealot said:
Yep... the deciding officer made the call based on a query I put out .. I can’t remember when .. this info you have is ‘killing’ her right now .. I know that she herself queried it a long long time ago .. she can’t understand what I just told her ... having read it .. that from January 2010 you can only retro 4 years. That’s 11 years lost ... and now 8 years later she will only get 4 ...
that was a Scope Section quote in post 3 ... the decision was made in her favor...
What do you mean she will lose all the years back dated .. not just the 4 ...
Thanks for your time on this ...
Click to expand...
Badly stated she paid 11 years prsi a1 she will get back 4 years the other 7 years state held on to them and will not allow all 11 to be used for state pension,

In the above posts I am just pointing out things may not be as bad as the looks which may help you I suspect they will over look quite a bit to get this sorted I know the can be more than fair in cases like this make sure you do the sums and know when you are ahead,
Just remember for the last 11 years she has taken home slightly more pay Because she was on a PRSIA1 stamp,
 
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It’s not clear if you and your wife have some understanding of the public sector pension schemes. So apologies if I am stating the obvious here! You mentioned years ‘lost’ and Retired2017 referred to the the state pension.
If your wife has been Class D for all her working life, then her pension and lump sum will be based on her final salary. If she has 40 years service her pension will be half her final salary. She would not be entitled to the contributory pension. If she has less than 40 years, she will get 1/80 of her final salary for each year worked.
If your wife has been a Class A public servant all along, she would still end up with the same size pension (ie equal to half her final salary) after 40 years service. But the pension would have 2 components - the contributory pension and her pension from superannuation.
It all gets a bit more complicated if she has less than 40 years service, or has ever worked part time.

Your priority at the moment seems to be the PRSI refund, but changing PRSI Class has implications for her pension. This is probably favorable, but it is worth your while trying to understand this.
 
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