UK Contribution & applying for Irish Contributory Pension

D

donalfff

Registered User
Messages
39
hello,

currently in receipt of small UK contributory pension and will shortly be applying for Irish Contributory Pension. looking through the application form, it asks abouts your foreign employment & also if in receipt of a foreign social welfare pension.

question: can your Irish contributory pension be affected negatively by receipt of UK pension? and if so how?

thanks
 
I assume you are talking about the Stste Contributory Pension. If so, then NO. Your entitlement to an Irish State Pension is dependant of your Irish PRSI record. Your can continue to receive your UK pension (presumably UK State Pension) in addition to any Irish State Pension.
 
No, it cannot be effected negatively. It might be increased by taking into account social insurance payments paid in another EU country but this would depend on a lot of factors - time spent in Ireland, in other EU countries, amounts paid, etc

Normally, if you are entitled to pensions from various EU countries you are meant to apply in your country of residence and the local social security agency will apply to the other countries.

In your case, the UK should take into account your social insurance payments in Ireland when they calculate your entitlements. If you applied independently,they will not have known about your payments in Ireland. It may be that they would not have any effect but ...
 
Conan said:
I assume you are talking about the Stste Contributory Pension. If so, then NO. Your entitlement to an Irish State Pension is dependant of your Irish PRSI record. Your can continue to receive your UK pension (presumably UK State Pension) in addition to any Irish State Pension.
Click to expand...
Not true - it also depends on your contributions in other EU countries but, in most cases, it's your Irish contributions that get the higher pension
 
donalfff said:
hello,

currently in receipt of small UK contributory pension and will shortly be applying for Irish Contributory Pension. looking through the application form, it asks abouts your foreign employment & also if in receipt of a foreign social welfare pension.

question: can your Irish contributory pension be affected negatively by receipt of UK pension? and if so how?

thanks
Click to expand...

Hey dinalfff

My brother living in Ireland applied directly to the UK for his UK state pension contributary last November, downloaded the necessary form from HMRC website, send it off and his pension was paid four weeks later. He did this because UK state pension is paid at age 65, utts currently 66 in Ireland. He receives the basic UK pension as he had spend many years paying class 2 NAT insurance when he returned to work in Ireland in 1998. He will apply for his full Irish contributory state pension in Nov as he was advised by citizen information that he has the full amount of prsi contributions paid in. Note both these pensions are not means tested.

You need to tell them about your UK pension when you apply for the Irish one for tax reasons and once a year I believe you have to fill in tax form but if these two pensions are your only source of income then doubtful you will have any tax to pay. I am presuming both your pensions are contributory ones because if they not it's a different story.
 
jpd said:
Not true - it also depends on your contributions in other EU countries but, in most cases, it's your Irish contributions that get the higher pension
Click to expand...

Yes that is true but I think in the question being asked by donalfff, I am presuming he only worked in UK and Ireland and not any other EU country.
 
donalfff said:
question: can your Irish contributory pension be affected negatively by receipt of UK pension? and if so how?
Click to expand...

As someone else said, the only negative may be tax.
But at retirement age, with an income tax exemption limit of 18k a year (36k if married), the full Irish pension on it's own is around 12,650 so even with your 'small' UK pension on top of that, you may not reach that limit anyway unless you have other income.
State pensions are exempt from USC.


jpd said:
Normally, if you are entitled to pensions from various EU countries you are meant to apply in your country of residence and the local social security agency will apply to the other countries.
Click to expand...

Normally yes, but I don't think this rule is particularly strict or enforced because the retirement age in Ireland is 66, but in the UK it's 65, so I'm guessing that's why the OP applied direct to the UK one year ago, rather than going through the Irish system one year early.


jpd said:
In your case, the UK should take into account your social insurance payments in Ireland when they calculate your entitlements. If you applied independently,they will not have known about your payments in Ireland. It may be that they would not have any effect but ...
Click to expand...

I don't believe that would make any difference to the OP.

The UK would only need to take into account his Irish PRSI record if he didn't meet the minimum 10 years contributions needed for a standalone UK pension.

If he had less than 10 years contributions in the UK, for example 4 years, then yes, the UK would take into account his Irish (EU) record, and pay him a pro-rota UK pension of 4/35.

But as his standalone record in each state entitles him to a portion of each state pension independently, the UK will pay his UK record based entitlement , and Ireland will pay his Irish record based entitlement.
 
My understanding of the calculation of pension rights in the EU is that each country where you have made contributions does the following calculations

1) It calculates the pension you are entitled to using the contributions you made in that country - let's call that amount PensionC

2) It calculates the amount you would be entitled to taking into account your full contribution record across the EU - let's call this amount PensionFull It will then calculate a fraction of this amount to take into account the fact that you only contributed a portion to that country so PensionEU = PensionFull x Contributions paid in country / Contributions paid in EU

They will pay you the larger of the two amounts - PensionC or PensionEU

The actual calculation of the ratio Contributions paid in country/Contributions paid in EU may be based on the number of weeks paid, number of months paid, monetary amounts paid or some combination depending on the country

A few countries will actually show you the details of the calculation but not all
 
You must log in or register to reply here.
Back
Top