66-70 Years Options

State Pensions reforms

Part 4 of the Social Welfare (Miscellaneous Provisions) Act 2023 provides for the amendments to the Principal Act which facilitate the provision of –

• access to the State pension (contributory), in certain circumstances, for long-term carers,
• the introduction of flexibility to State pension (contributory) to allow a person to defer claiming the State pension (contributory) up to the age of 70.
• continued access to specified weekly social welfare payments after reaching pensionable age and during pension deferral.

A number of consequential changes to PRSI related provisions and other provisions are also necessary to provide for the features above.

Contributions

Social Welfare (Miscellaneous Provisions) Act 2023 amends the criteria relevant to becoming an ‘employed contributor’, (broadly, an employed person in receipt of renumeration), to take account of a person choosing to remain in employment after attaining pensionable age. In this context, from 1 January 2024, the upper age criterion to apply will be 70 years. The effect of this is that an employee born after 1st January 1958 who has not claimed State pension (contributory) between the ages of 66 and 70, may be an employed contributor and PRSI employment contributions are payable by that person and their employer.

Social Welfare (Miscellaneous Provisions) Act 2023 amends provisions which relates to the payment of employment contributions by an employed contributor to take account of a person choosing to remain in employment after attaining pensionable age. In this context, from 1 January 2024, the upper age criterion to apply will be 70 years. The effect of this is that where employees born after 1st January 1958 have not claimed State pension (contributory) between the ages of 66 and 70:

PRSI employment contributions are payable by them and their employer (including on any gain arising on the exercise, assignment, or release of a right granted under section 128 of Taxes Consolidation Act 1997 (i.e., exercise of employee share options)); (b) such employees are enabled to accrue additional contributions which will be taken into account in claims for benefits by them after age 66.

Self-employed contributors

Social Welfare (Miscellaneous Provisions) Act 2023 amends the criteria relevant to becoming a ‘self-employed contributor’ to take account of a person choosing to remain in self-employment after attaining pensionable age.

In this context, from 1 January 2024, the upper age criterion to apply will be 70 years. A person born after 1st January 1958 and who has not claimed State pension (contributory) between the ages of 66 and 70 may be a self-employed contributor, i.e., they are liable to pay PRSI and are enabled to accrue additional contributions which will be taken into account in claims for benefits by them after age 66.

Voluntary contributors

In certain circumstances, a person can apply to become an insured person paying contributions voluntarily and become a voluntary contributor. The amendment takes account of a person choosing to remain a voluntary contributor after attaining pensionable age.

In this context, from 1 January 2024, the upper age criterion to apply will be 70 years and allows voluntary contributors to pay social insurance contributions beyond 66 years of age (to 70) if they have not claimed State pension (contributory). Those additional contributions will be taken into account in relevant claims by them after age 66.

Social Welfare (Miscellaneous Provisions) Act 2023 amends provisions which relates to the rates and frequency of payment of voluntary contributions and certain other conditions that apply to a voluntary contributor. The amendment takes account of the upper age criterion to apply of 70 years from 1 January 2024 and provides that these requirements and conditions will now also apply to voluntary contributors past 66 years of age (to 70) if they have not claimed State pension (contributory). Those additional contributions will be taken into account in relevant claims by them after age 66.

Illness Benefit

Social Welfare (Miscellaneous Provisions) Act 2023 amends provisions which relate to eligibility for illness benefit, to extend entitlement to the illness benefit scheme to those aged between age 66 and 70, born after 1 January 1958, who have not claimed State pension (contributory), provided the other conditionalities of the illness benefit scheme are met.

Social Welfare (Miscellaneous Provisions) Act 2023 provides that if a person is on illness benefit immediately before they turn 66, they must apply for remaining payments on foot of that existing claim to continue past 66.

Social Welfare (Miscellaneous Provisions) Act 2023  amends provisions  which relate to eligibility for partial capacity benefit to provide entitlement to partial capacity benefit to a person born after 1st January 1958, if he or she has not claimed State pension (contributory) between the ages of 66 and 70, so long as the other requirements of partial capacity benefit are met.

Social Welfare (Miscellaneous Provisions) Act 2023 amends provisions to provide that, similar to illness benefit, if a person on partial capacity benefit is approaching their 66th birthday, they must apply for remaining payments on foot of that existing claim to continue past 66 provided they progressed to partial capacity benefit from illness benefit.

Jobseeker’s Benefit

Social Welfare (Miscellaneous Provisions) Act 2023 amends provisions which relates to the eligibility for Jobseeker’s Benefit to provide entitlement to jobseeker’s benefit (to a person born after 1st January 1958) between the ages of 66 and 70 if he or she has not claimed State pension (contributory), provided the other conditionalities are met.

Social Welfare (Miscellaneous Provisions) Act 2023 Act 2023 amends provisions which relates to the duration of payment of jobseeker’s benefit to provide that, similar to illness benefit and partial capacity benefit, a person must apply for remaining payments on foot of an existing jobseeker’s benefit claim to continue past their 66th birthday.

Jobseeker’s Benefit (self-employed)

Social Welfare (Miscellaneous Provisions) Act 2023 contain provisions which relate to eligibility for, and duration of, payment of jobseeker’s benefit (self-employed). These mirror the equivalent jobseeker’s benefit provisions.

Social Welfare (Miscellaneous Provisions) Act 2023 amends provisions which relate to entitlement for State pension (contributory). It provides for the expansion of the eligibility criteria for State pension (contributory) beyond those who have reached pensionable age (66), to include those who apply for their State pension (contributory) up to the age of 70, to draw a higher rate at their relevant age of claiming (67, 68, 69 or 70).