Voluntary prsi contributions

P

partnership

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Just trying to maximise my pension entitlements. I intend to retire at 60 in 2025 when I get a preserved public sector pension. I will have 419 A rate contributions at that stage. (If I did manage to get anything it would be a reduced rate one as would not have the 48 average). Unsure of how the TCA works with mixed contributions but would only have 1693 mixed contributions, not the full 2080.

The criteria to pay voluntary contributions mentions that you have to have 520 PRSI contributions - are these A contributions or could they be mixed?
The cost seems to be 6.6% of your previous year's earnings which would make the first year very expensive so is it worth doing?

Note - I don't think I qualify for a mixed pension as you can't get a mixed pension if you qualify for another EU or reciprocal pension and I am buying back years for the UK one.

Amazing that I can get a UK pension having worked there for fewer years and can't get an Irish one!
 
partnership said:
I don't think I qualify for a mixed pension as you can't get a mixed pension if you qualify for another EU or reciprocal pension and I am buying back years for the UK one.
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Are you sure you are not conflating two separate types of "mixed" or pro-rata pensions - the pro-rata pension based on a mixed Irish Social Insurance record, and a pro-rata EU (& UK) pension?
 
They can be mixed. You can skip the first year and it would cost 500 euro after that. Also get signed up for A credits immediately after you retire. You can have A credits and voluntary contributions at the same time, this will maximize your prsi contributions record.
 
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  • You have a minimum of 520 PRSI contributions (full-rate and modified-rate).
  • You have at least 260 full-rate paid contributions since your entry into insurance.
  • Adding together a mixture of full-rate contributions and modified-rate contributions, gives you a yearly average of 10 from the time you first entered insurance (or 1953, whichever is later) to the end of the tax year before you reach 66. This yearly average condition does not apply if the TCA (or Aggregated Contributions Method) is used.
  • You do not qualify for a pension under EU regulations or under reciprocal arrangements with other countries (or you only qualify for a pension at a lower rate than this pro-rata pension would give you).
These are the requirements for a mixed rate (A and B). I don't think I would meet the last one if I get a UK pensions (may not get full rate UK one but certainly half)

Pro rata - I understand this to be where you do not have the average of 48 contributions which I would not have as over 42 years. It appears that for this you need a minimum of 520 contributions - 260 have to be full rate which I have but would need to purchase voluntary contributions to make up to 520. I also have a year in Australia and they have a reciprocal agreement but not sure how this can be used.

I don't understand the TCA and whether I would qualify for anything under that. I would have 8 years full rate contributions over 42 years.
 
I am currently paying Class A. Started paying A in 1990 then moved to D in 1992/1993. Finished D stamps in 2018. Was in Australia for a year and commenced paying A at the end of 2019.
 
Okay, do as I suggested at #3 and you will have the 520 A contributions needed to get a partial Irish Pension. You can get up to 5 more years of contributions. 2 years voluntary @ 500 euro per year and 3 years credits at no cost.
 
S class said:
Okay, do as I suggested at #3 and you will have the 520 A contributions needed to get a partial Irish Pension. You can get up to 5 more years of contributions. 2 years voluntary @ 500 euro per year and 3 years credits at no cost.
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Rules for voluntary contributions seem to imply you have to start the week after you finish

  • Agree to pay voluntary contributions from the start of the contribution week that follows the week in which you leave compulsory insurance
In which case it could cost a few thousand rather than 500. I would also be moving to Australia so don't think I can sign for credits?
 
I think you can start the voluntary contributions from a date of your own choice. If you signed on for credits and did not emigrate until next year your voluntary contributions could be based on credits only i.e. 500 euro. Also with 520 A contributions you would get 25% of Irish pension (3448 euro per year) so it could still be worthwhile paying several thousand euro for the first year voluntary contributions. The next year would be 500 euro
 
You could also claim jobseekers benefit for up to 9 months before you emigrate. This would give you your A credits.
 
S class said:
I think you can start the voluntary contributions from a date of your own choice. If you signed on for credits and did not emigrate until next year your voluntary contributions could be based on credits only i.e. 500 euro.
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I don't think that is correct. Voluntary contributions have to be backdated to the time you leave compulsory (paid) insurance. The contribution would be based on income for that year.
  • "Apply to make your voluntary contribution within 60 months (5 years) of the end of the last completed tax year (contribution year) during which you last paid compulsory insurance or you were last awarded a credited contribution. (Since February 2017, the time limit for making voluntary contributions was extended from 12 months to 60 months.)
  • Agree to pay voluntary contributions from the start of the contribution week that follows the week in which you leave compulsory insurance.
If @partnership wanted to receive credited contributions he/she would need to apply for Jobseeker's Benefit (and meet the conditions). But he/she would still have to backdate any voluntary contributions to cover this same period if the aim is to reach the criterion of 520 paid contributions. The credited contributions wouldn't count for this purpose.
 
I seem to remember that you could choose to start during a particular year or wait until the start of the next full year. Not 100% sure. There is always the option to work the first week of January 2026 and base the voluntary claim from that year. It states the last year you left compulsory insurance, not compulsory paid insurance. The credits on jobseekers benefit should qualify as compulsory insurance.
 
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It is a total minefield if you have anything other than Class A contributions. I also worked in Australia for a year so think these contributions can be combined but it still won't bring me up to the 520 and I want to use the UK ones for a pension there.

New question in relation to the OH who has similar but different mixed stamps.

179 Paid A. 181 Credits (unemployed)
Approx 6 years self-employed in Spain (not sure where I can get that record from)
1 year in Australia
The rest are D stamps which he is paying currently.

If he combined his Spanish with his A it brings him to 491 (can he use the credits to make up?) or if added Australia would be over 520.
I am also looking to buy back his UK years so he can hopefully get at least half pension there.

Would be great if there was a calculator you could just put the figures in and it did an estimate.
 
Have you tried running any of your queries past Social Welfare? -

Where can I get more information?

For more information on Voluntary Contributions, contact your local Social Welfare office or Client Eligibility Services, Waterford Office, at the address provided:

Department of Social Protection, Social Welfare Services Office, Cork Road , Waterford
Phone number:
0818 690690
01 4715898.

Or try a Citizens Information Centre.
 
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Have either of you got any PRSAs or AVCs. If you have you could get class S contributions if you set up an ARF and make yearly drawdowns of at least 5000 euro.
Even if you don't have any you can still set them up before you retire.
 
Just to clear up any confusion from post #11 and #13.
You can choose when to start voluntary contributions as below.

Commencement as a Voluntary Contributor​

A person who has been admitted as a voluntary contributor can choose the point in time from where they decide to pay voluntary contributions, as follows:
  • a person can elect to pay voluntary contributions from the week immediately after they last paid a compulsory PRSI contribution as an employed or self-employed contributor OR
  • a person can elect to pay voluntary contributions from the commencement of any subsequent contribution year of their choice, within the time period covered by their admittance
For example, if a person was being given the option of paying voluntary contributions going back 60 months (5 years), she or he can opt against paying voluntary contributions over the first 2 years of that admittance period, in favour of paying over the last 3 full years of that period and so on.


From...

Operational Guidelines: PRSI - PRSI Voluntary Contributions​

 
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I edited some of my previous posts.
You don't need a minimum of 260 A contributions to qualify for voluntary Prsi contributions. You just need 520 paid contributions, any combination of A, B or D.
I was confusing the Pro Rata qualifications with the voluntary Prsi qualifications.
 
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