#1




Job Seekers Benefit and the contributory pension..
If you are collecting Job seekers benefit ( as apposed to Job seekers allowance) is there stamps paid toward your contributory pension ?
thanks 
#2




For each week you sign on, you are awarded a PRSI credit, which can be counted (along with your paid PRSI contributions) when determining entitlement to the Contributory State Pension. This applies both to Jobseeker's Benefit and Jobseeker's Allowance.
To qualify for a contributory pension, there is a minimum number of paid contributions you must have, in addition to an average number of contributions over a number of years  these can be paid or credited contributions. 
#3




Quote:
You need 520 paid contributions* Credited contributions only count toward your average. *If you reach pension age on or after April 6 2012, you will need to have 520 paid contributions (10 years paid contributions). In this case, not more than 260 of the 520 contributions may be voluntary contributions. However, if you were a voluntary contributor on or before April 6 1997 and you have a yearly average of 10 contributions, you may meet the requirement if you have a total of 520 contributions, but only 156 need to be compulsory paid contributions. 
#4




Yes, you're correct, based on the 2012 rules.

#5




A friend hopes to retire in 2022,by then he will have 520 paid a stamps and 520 credited a stamps.What can he hope to collect from his pension.(assuming no future changes to rules and regs).

#6




thanks

#7




Quote:
The average is calculated from the first year of employment. You may get different rates of pension, depending on your yearly average contributions. The table below outlines the various percentage rates. Yearly average Contributions Amount of Standard rate pension 48 or more : Maximum rate 2047 : 98% of maximum rate 1519 : 75% of maximum rate 1014 : 50% of maximum rate 
#8




@hopalong: to calculate the yearly average, add the total number of paid and credited contributions together and divide by the number of years worked.

#9




But Hopalongs friend hopes to retire in 2022, by which time a total contributions approach is proposed. This will mean that 30 years of contributions will be required for a full pension. 10 years(520 contributions) will get you one third of the full pension. Details are at Welfare.ie

#10




so this will mean 1/3 pension plus 1/30 for each of the credited years(520=10yrs) bringing the sum to 1/3 +10/30 of total pension = 2/3 of pension would that be correct?

#11




hopalong, yes, it appears so from the information on www.welfare.ie
The new framework also proposes a maximum of 520 (10 years) credits that can be counted towards a contributory pension. 
#12




thanks,i found it all very confusing to work out,also could i ask does a years credit have to be 52 weeks credit or is there a minimum of weeks per year?

#13




At the moment, a year's credits means 52  which is why SW specify the number of credits/paid contributions required instead of the number of years. The number of years is given as a general guide. I'm not sure if this may change in the future.

#14




If the average is calculated from the year you started work, would this not seriously effect people who took time out to rear their families in the 70s and 80s.
If they started work after their Leaving in their late teens, took time out, went back into the workplace, then is their average calculated from their late teens to 65/66? In that case, it could be 48, 49 divided into their paid/credited contributions. 
#15




The Homemaker's Credit scheme was introduced in 1994 to award credits to persons who took time out of the workforce to raise children.
Homemakers can be awarded PRSI credits for a number of years, which would increase their total & annual average. More information may be found here: http://www.welfare.ie/EN/Publication...homemaker.aspx 
#16




Thanks Gipimann for that. Yes I know about Homemakers credits.. But these were only introduced in 1994 and will not benefit homemakers who took time out in the 70s and 80s and are due to retire from 2015 onwards.
I am confused about the average. Is the calculation I outlined for a person who entered the workplace in their teens correct? If so, it gives an advantage to those who entered the workplace at a later age. 
#17




Is there not something in the new regs. about 260 fully paid and making up difference with with "modified rate employment contributions"
So its not right to say you need 520 Thanks 
#18




Yes Valery...You are correct it does give an advantage to people who entered the workplace at a later stage. Say someone comes to live in Ireland at age 55 and works the minimum 10 years now required for a full Contributory State Pension.. they will be in receipt of a much higher pension that a Homemaker who had a career break to rear a family. The new changes from September will make it even worst for mums/dads who stayed at home to take care of family...in some cases up to €30 a week less in payments.
State Pension (Contributory) Rates from 6 January 2012 Yearly Average Contributions Personal Rate Per Week 48 or over €230.30 20  47 €225.80 15  19 €172.70 10  14 €115.20 State Pension (Contributory) Rates from September 2012 Yearly Average Contributions Personal Rate Per Week 48 or over €230.30 40  47 €225.80 30  39 €207.00 20  29 €196.00 15  19 €150.00 10  14 €92.00 
#19




Thanks Ann1 for your helpful reply.
I was afraid that was the case. How or why is a pension system designed in such an unfair manner? I think that there will be many people, mainly woman, who are going to get an unpleasant surprise when they apply for their pension. 
#20




Reduction of State Pension
Some of us older folk are in for a substantial reduction in a couple of years re our State Pension Yes a reductiondespite what the government promised us, it is a reduction,!!
Just look at the changes coming for someone with a yearly average of 2024 contributions this year and what is coming in around Sept. This government changed the rules when it got elected. Remember this when election comes around. They speak with forked tongues.!! 
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