Written answers

Wednesday, 22 January 2025

Department of Employment Affairs and Social Protection

Pension Provisions

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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897. To ask the Minister for Employment Affairs and Social Protection for an update on a matter (details supplied); and if she will make a statement on the matter. [1654/25]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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If a person is in insurable employment and is awarded the State pension (contributory), the appropriate PRSI class in respect of their employment changes from class A to class J. There is no employee PRSI liability under class J, although there is an employer PRSI liability of 0.5%.

When a person is awarded the State pension (contributory), the award letter from my Department advises them that their employer will be notified via Revenue’s Payroll Notification of the award of pension to ensure the correct PRSI class is applied.

In the case cited by the Deputy, the employee is advised to contact their employer and ensure that the appropriate PRSI class for his employment is changed from class A to class J with effect from the date of award of the pension. If there is a PRSI refund due for a prior period where the employee was deducted the incorrect amount of PRSI, then they can contact my Department's PRSI Refunds area at PRSIrefunds@welfare.ie for any necessary action.

For the Deputy's information, since 1 January 2024 a person can draw down their State pension (contributory) at any stage between age 66 and 70. This gives a person who defers their pension the opportunity to continue to work and pay PRSI which may improve their contribution record for pension purposes.

I trust this clarifies the matter for the Deputy.

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