Public Sector pension Class A stamp retire early

ianjohn

Hi, my partner thinking of retiring early from public sector.

But apparently with stamp A they have to sign on each week at job centre/social welfare.

Then they cant work even part time until retirment in 7 and some 8 years.

There seems to be some debates going on in other websites, can anyone throw any light on it.

Can I ask any class A who have retired early do you have to sign on each week? Can you not work without losing the supplementary pension.

How does it work?

coylemj

If they have been paying class A PRSI contributions then when your friend leaves their current job, they can sign on for jobseeker's benefit which they can claim for 9 months, during which they will receive PRSI 'credits'. After that, they can sign on once a year for credits at their local SW office, assuming they are not claiming jobseeker's allowance which is means-tested.

http://www.welfare.ie/en/Pages/Jobseeker's-Benefit.aspx

I see no reason why they can't work part-time, as long as they are paying PRSI. Signing on for credits involves a declaration that you are not working, are available to work and are actively seeking work.

You can use a maximum of 10 years credits when claiming the state old-age pension so if your friend is 7 or 8 years short of the pension age, they can simply keep signing on for credits until they can claim the pension.

ianjohn

coylemj wrote: »

I see no reason why they can't work part-time, as long as they are paying PRSI. Signing on for credits involves a declaration that you are not working, are available to work and are actively seeking work.

Hi, thanks for your reply.

Yes if they work, even for a day they lose their supplementary pension, is this correct tho?

coylemj

ianjohn wrote: »

Then they cant work even part time until retirment in 7 and some 8 years.

ianjohn wrote: »

Yes if they work, even for a day they lose their supplementary pension, is this correct tho?

Is your partner potentially leaving on disabiity? That is the only way they will end up in a situation where they cannot take on any kind of work.

ianjohn

coylemj wrote: »

Is your partner potentially leaving on disabiity? That is the only way they will end up in a situation where they cannot take on any kind of work.

She not leaving on disability, but supplementary pension people say if you do not sign on with social welfare they will not pay the supplementary pension?

Can you explain how she can please?

coylemj

ianjohn wrote: »

She not leaving on disability, but supplementary pension people say if you do not sign on with social welfare they will not pay the supplementary pension?

Can you explain how she can please?

Are you referring to jobseeker's benefit? For someone taking early retirement and not going on disability, the only payment that requires you to sign on is jobseeker's benefit.

You mentioned the 'supplementary pension people', are they in the local social welfare office or at her current work?

Mrs OBumble

OP in thinking it may be a different class than A they are on.

How long have they been working in the pyblic service? Things are very different for long-serving public servants than for regular employees.

Maybe try asking the union for advice.

notharrypotter

Mrs OBumble wrote: »

OP in thinking it may be a different class than A they are on.

How long have they been working in the pyblic service? Things are very different for long-serving public servants than for regular employees.

Maybe try asking the union for advice.

I thought that all civil servants since 1994 pay class A?
When did their partner start in the civil service?

Salmon

Are they on an accelerated years pension? Ie Garda, defence forces etc? If so, they are entitled to a supplementary pension to cover them until they reach pensionable age. Unfortunately, once you work at all you will lose the supplementary pension. Thats my understanding

shar01

A couple of the conditions for a supplementary pension from the Public Service pension scheme is that you're not working and are signing on for credits.

This is what I found on dept of education's site:
https://www.education.ie/en/Education-Staff/Services/Retirement-Pensions/Teaching-Staff/Supplementary-Pensions/

coylemj

I did some research and think I've figured it out. Thanks to shar01 for that very useful link above.

People in the public service who pay PRSI Class A contributions pay a reduced levy for their occupational pension. When the time comes, they get a reduced occupational pension (less than, for example, a teacher with the same service who retired 10 years ago) plus the state old-age pension, the aim being that the combined pension is the same as if they had been in the old scheme and getting the occupational pension only.

What are co-ordinated pension contributions (co-ordination)?

Co-ordination is a common feature of pension schemes. Where employees pay full rate PRSI (Class A), a reduced pension contribution is paid and the amount of occupational pension is reduced accordingly on the basis that the reduction is balanced out by the Social Welfare benefits payable.

Above is from the link in shar01's post.

This hybrid setup is also a feature of certain private sector pension schemes, except the arrangement there is called 'integration' while in the public service it's called 'co-ordination'.

https://www.pensionsauthority.ie/en/LifeCycle/Private_pensions/Integration_coordination/

In many cases, a public sector employee will be allowed to retire early on a pension but a few years before they are entitled to claim the state old-age pension and the 'Supplementary Pension' is paid in that case to bridge the gap. If you take on work during that period, you lose the supplementary pension. And you must claim jobseeker's benefit for the 9 months if you are entitled to it.

Explanatory Note (PDF) on Supplementary Pensions for teachers.

ianjohn

Surely there must be a way around this, if someone wanted to do a few days work.

ianjohn

Surely there must be a way around this, if someone wanted to do a few days work.

Addle

ianjohn wrote: »

Surely there must be a way around this, if someone wanted to do a few days work.

The public service offers ample job sharing arrangements.

ianjohn

Addle wrote: »

The public service offers ample job sharing arrangements.

Thats one way...any others...

ianjohn

New article in the Irish Times about Public Sector Pensions and Supplementary Pensions....

https://archive.ph/2024.05.23-070438/https%3A//www.irishtimes.com/business/work/2024/05/23/gardai-say-those-retiring-from-november-will-have-to-make-false-declaration-that-they-are-available-for-work/