PRSI simultaneously at Class D and Class K

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greeneman

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My spouse , aged 62 has been a public servant for 28 years. Pays PRSI at class D.
Paid 487 contributions from 1984 to 2001 at Class A
She also has a business for last 10 years where she pays PRSI on the profits.
Her Dept. of Social Protection statement indicates this is at Class K. But its not unearned income , so I am wondering why its at Class K.
I am thinking all public servants on class D , with self employed income, default to Class K. Furthermore there are no state pension benefits with Class K or Class D. Perhaps some one of the excellent contributors on here can confirm this for me .
I am trying to get her some sort of state pension for the 20 years (487contributions) , in the the private sector. No occupational pension applies for this period. It looks like she will get nil for all the PRSI paid on self employed income. But she would get 487/2080 X state pension for her 487 contributions. Could someone confirm ?
Excellent forum.
 
We got the below from welfare when we queried if our client should be class S on self employed income while also being a public servant"

Copy and paste from welfare officer to my email





" A person paying modified rate PRSI on employment in the public service is an excepted contributor for self-employed PRSI purposes.

Excepted Self-employed contributors are listed in Part 3 of Schedule 1 .

Section 5 of Part 3 of Schedule 1 of the Social Welfare Consolidation Act 2005 specifically deals with persons paying modified PRSI and states

A person who is employed in any one or more of the employments specified in Article 81, 82, 83 or 84 of the Regulations of 1996

As your client is paying modified contributions she is an excepted contributor for self-employed PRSI purposes and no self-employed PRSI should have been paid.

She is entitled to a refund of PRSI paid as a director."
 

​

"PRSI Class K9 Rates​

Individuals in the following employments will be classed as PRSI Class K9 and will pay the rate in the table below;

  • modified rate contributors for example, civil and public servants recruited prior to 6 April 1995, with self-employed earned income from a profession or trade and any other unearned income such as rental or investment income"



Modified rate (class B and D) contributors are locked out of gaining any reckonable (for COAP) Prsi contributions until they cease their pre 95 public sector employment.

With her 487 class A contributions she has sufficient to get a pro rata pension. This will be a small amount. Maybe about €50 per week.

If she can gain extra reckonable contributions to take her to 520 or above she can get a larger pension. Maybe about €100 per week.

When she ceases her class D employment she can gain these extra Reckonable contributions up to maximum age 70.

These extra Reckonable contributions could be class S from her business or from drawdowns from an ARF. They could also be from voluntary Prsi contributions or from class A PAYE employment.

If for example, she retired at age 65 she could get 52 rekononable contributions up to age 66. This would bring her to 539 reckonable full rate paid contributions and allow her to claim a partial COAP calculated using the blended YA and TCA calculation.

Check out these threads to see the possibilities.

Pre 95 public sector workers and Prsi until age 70.

This category of workers may not be able to qualify for the contributory pension at age 66. If they don't qualify they will remain liable to Prsi on rental and investment income up to age 70. They will pay class K Prsi on their unearned income. This is charged at 4% and gives no reckonable...
www.askaboutmoney.com

Information on pension calculations after age 66.

If a customer decides to defer their pension, will the years worked after age 66 be counted as part of their yearly average? If a customer chooses to defer their pension, the number of extra years worked will add to the divisor for the yearly average. (e.g. if a customer has 50 years cons at...
www.askaboutmoney.com

If her 63rd birthday is in 2026 and she retires less than 13 weeks into 2026 she could possibly qualify for Benefit Payment 65. This would involve getting 13 weeks of class A employment in 2026 immediately after she ceases her class D employment, and then continue signing on for Jobseekers credits after the employment period ends.

There is another way to qualify for Benefit Payment 65 using her class S business contributions, but she would need to cease her class D employment before the start of 2026.
 
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Hello theCoffeepod and S Class
I really appreciate your insights and advice. Great forum because of your willingness to share knowledge.
Very succinct below from S Class.

Coffeepod: TBH , I find the language that your welfare officer used quite difficult to penetrate. It is probably me.
Modified rate (class B and D) contributors are locked out of gaining any reckonable (for COAP) Prsi contributions until they cease their pre 95 public sector employment.
Click to expand...
 
28 years ago is 1997 and Class D is only for public servants recruited after April 1995.

Why is she paying Class D at all?
 
S class said:
Modified rate (class B and D) contributors are locked out of gaining any reckonable (for COAP) Prsi contributions until they cease their pre 95 public sector employment.
Click to expand...
@greeneman
Sorry, this statement is incorrect.

A pre 95 public sector employee can gain reckonable Prsi contributions during their career.

For a week when they have not paid a modified contribution they appear to gain a reckonable Prsi contribution, if they have class A employment or earned self employment for that week.

This is demonstrated in this post.
Post in thread 'Contributions for Irish pension.'

This is badly formatted, but it shows 13 reckonable for 2005 and 21 reckonable for 2004, alongside class D contributions.

2005 13 39 D, 52 S - 52 -
2004 21 31 D, 52 S - 52 -

30 reckonable class A are shown here alongside class D contributions.

89/90 30 30 A1, 5 D1 - 30 -


So presumably in the period from 1984 to 2001 she had some career breaks or similar.
 
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Hello All
Yes, from 1994 she had some sort of temporary/short term contract status and in 2001 they converted her retrospectively to Pre 1995 status. For 1994 to 2001 she has class A.
 
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