Help Calculating Contributions for State Contrib. Pension...

[mandelbrot]

OK so I'm trying to calculate my Mum's eligibility for her State Contributory Pension - she'll be 65 in a few weeks, so it's only around the corner.

I've got a statement of her contributions paid and credited since her date of entry in 1964-65.

Assuming she has a full year's contributions this year her position up to end of 2013 will be:

Total reckonable contributions since 1979-80 (paid+credited) 1157
"Alternative" Average (1157/35 contribution years) 33.06

Year of entry 1964-65
Total reckonable contributions (paid+credited) 1452
"Normal" Average since first entry (1452/50 contribution years) 29.04

She's not eligible for homemakers credits apparently, since these only came in from April 1994.

Based on this she would only qualify for a payment of 196p.w. - if this is the case can she opt for the Non-Contributory pension, as her means if/when she stops working would be such that she'd get a higher payment if she was on the non-contributory pension? It seems absurd that she could effectively be punished after working for 40 of the last 50 years, relative to a person who never worked a day in their life?

One other point:
She worked in my Dad's company, of which she was a director and 10% shareholder, for 10 years from the mid-80s to the mid-90s which are showing a blank on her record. If she had her contributions for these 10 years her Alternative Average would be 47.9 which would round up to 48.

Is there a means by which her record can now be fixed to reflect the fact that she was working, but all salary was being drawn in his name and all PRSI paid in his name?

 

[gipimann]

If your mother's entitlement to a contributory pension is less than what she might qualify for on a non-contributory pension, she can apply for the non-contributory scheme. The pension section usually check these details and advise the person to apply if it appears they'll qualify for more on the means-tested scheme.

I recommend you contact Scope Section in Dept of Social Protection regarding the eligibility of her employment in your father's company as they are best placed to advise.

 

[Black Sheep]

Even if she got recognition for the years that she worked in your Dad's company they may not benefit her. There is a clause which states that while she/he is obliged to pay PRSI she is not allowed to benefit (ie sick leave, pension etc) as the employment is not "at arms length"

However I would still do as gipiman says and talk to Scope

There seems to be some gaps in her record. Perhaps she was a stay at home mum or are there any UK or other contributions.
Just to remind you that the means test for Non-Con pension is based on combined income and savings.
Sorry if this all sounds very negative

 

[oldnick]

I don't know if you are following my own thread on my own query about PRSI contributions for my wife who still has ten years to go before pension.

My last post is similar to yours where I state that my wife worked in our company for many years but I had not put her on the books in the 1980s -no salary no PRSI.
This was my stupidity which resulted in her "losing" many years of contributions, although it seems she can now make up for it on rental income prsi.

Anyway, I made enquiries with several depts about the fact that she was indeed working in the company etc etc -and was laughed at, indeed scolded with one official almost suggesting I was pulling a fast one.

I can't agree that being a co-director and/or shareholder in a family business disqualifies one for a state pension if one has paid S contributions .
Certainly there are several things that directors/shareholders in family businesses can't claim for - sick pay, dole etc - but the state pension is not affected if one has sufficient contributions.
However, people who were on S contributions don't get pensions till they're 66 -at least this is my own position in two months. I assume Mrs Mandelbrots recognised paid contributions were in another category.