Heather Humphreys (Cavan-Monaghan, Fine Gael)
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From 1 January 2024, the State Pension (Contributory) (SPC) will become more flexible. Legislation is currently progressing through the Oireachtas which will, from 1 January 2024, allow a person to draw down their SPC at any age between 66 and 70.

In this context, the upper age limit for employed and self-employed persons to be exempt from PRSI is being changed from 66 years to 70 years with effect from 1 January 2024. This will allow persons to continue to pay PRSI past age 66 which may improve their contribution record when they decide to draw down their SPC.

This change is applicable to all persons who are employees or self-employed with the exception of those who have already reached 66 years of age by 1 January 2024, that is, they were born before 1 January 1958, and also those who have been awarded their SPC. Such persons will not be liable to pay PRSI on their income after the age of 66 in the same way as a person who is currently 66 years of age or over is not liable. In the case of employees, Class J applies (nil contribution by employee and 0.50% contribution by employer). Class M (nil contribution) applies to self-employed persons who had paid Class S up to age 66.

I trust this clarifies the matter for the Deputy.