Contributory pension

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asdfg

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Don't know if this is in the right forum
I applied to get the contributory pension. I have 420 full rate social insurance contributions I need 520. Unfortunately I went on sick leave and have over 25 years of reckonable credits. I have been told I will not get the contributory state pension as I need 520 full rate social insurance contributions.
I am very upset as I when assumed I checked it out a few years ago I just needed 260 contributions. This was increased to 520 contributions with little or no advise as to how I could increase my contributions as I was on illness benefit I was not able to go back to work.
I am aware of the average rules that apply in order to qualify for the contributory pension
I have a few questions
1. Is there anything I can do to bring my 420 contributions up to 520 ?
2. Can I make voluntary contributions ?
3. Will I qualify for the state pension under the new total contributions approach expected from 2020 ?
4. Under the new approach do I still need 520 full rate contributions?
 
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"While the rules are complex, there are many people who easily meet the conditions. If you are now under 66, you should qualify for a State Pension (Contributory) if you have been: Employed or self-employed for most of your life Employed on and off for at least 10 years in total but have been receiving unemployment payments or illness benefits in the periods between employment or"

This from the Citizens Information website suggests that if a person works but does not qualify with enough stamps of 520, then goes on illness benefit until their retirement age and gets multiple credits they do not qualify for a Contributory Pension.

However if a person works and does not qualify with enough stamps of 520, then goes on illness benefit but returns to work for "a few months" before retirement will qualify for a Contributory Pension.

Is this correct?
 
How many paid stamps does a person in full employment receive in an average year?
 
One per week so 52, so basically they want you to have worked and contributed for 10 years to qualify for a pension.
 
My wife worked from circa 1969 to 1976 in about 3 different companies, 7 years total. She would not have payslips etc, just the name of the company that she worked for. She cannot remember if she paid any social welfare contributions.

She left work when she got married in 1976 and worked in the family home as a mother to our children.

She went back to work in 1999 and worked until 2006, 7 years total, with a different PPS number to the one she had back in the 70's.

Then went on illness benefit, currently.

So he has about 14 years working full time, with a large gap between her employment, and 12 years credits over the last twelve years.

Next year she will be 66. Is there any likelihood that she will qualify for a full Contributory pension?
 
The answer to a somewhat related question in this Irish Times column is relevant to some of the queries that have been raised in the OP:

https://www.irishtimes.com/business...t-on-access-to-new-improved-pension-1.3684320

Sorry - answer here if you can't access the link :

The review you refer to is a lookback project for people who have retired since April 2012 to see if they would fare better under the proposed new [broken link removed] to calculating the amount of pension they might receive.

Unfortunately, it appears your wife will not be able to make the transition from non-contributory to contributory pension under this process. This is notwithstanding the extensive homecarer credits she might otherwise be eligible for.

For all the improvements that the Total Contributions Approach promises for many people, there is still the first step threshold of 520 paid contributions over a working life to be reached.

Credited contributions – even if some were inadvertently or otherwise withheld – are irrelevant until this hurdle is crossed. Only then does the new homecaring credit of up to 20 years’ credited contributions for time spent out of the workforce rearing/caring for family come into the reckoning.

Over threshold
Your wife had close to the 520 paid contributions over her working life but was not quite over that threshold. So, unless she retired before April 2012 when the minimum threshold was 260, she will not qualify for consideration under the new scheme as currently proposed by the Government. April 2012 was when the threshold was increased to 520.

In short, if you are on a non-contributory scheme, you won’t come under the review.

It is worth keeping an eye on this as these things have a habit of being amended before they finally pass into law. It could be that the 520 threshold is reduced though there is no current intention to do so.

It’s a pity she was not aware of the impact of her shortfall slightly earlier, as, before April 5th, 2015, it would have been open to her to pay voluntary contributions which might well have brought her above the 520 threshold. That option is no longer available after April 2015 unless you already have the minimum 520 paid contributions, which is no good to you, or her.


Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2, or email [email protected]. This column is a reader service and is not intended to replace professional advice.
 
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Early Riser said:
For all the improvements that the Total Contributions Approach promises for many people, there is still the first step threshold of 520 paid contributions over a working life to be reached.
Click to expand...

If my wife worked for 7 years back in the 70's, then a gap of 23 years working in the home, then went back to work for 7 years, would she not have more than 520 paid contributions during her lifetime? (14 years contributions).
 
Odea said:
If my wife worked for 7 years back in the 70's, then a gap of 23 years working in the home, then went back to work for 7 years, would she not have more than 520 paid contributions during her lifetime? (14 years contributions).
Click to expand...

It would seem to me that she would. She would have to establish this with Welfare. Sorry, I am unfamiliar with the process.

Odea said:
She went back to work in 1999 and worked until 2006, 7 years total, with a different PPS number to the one she had back in the 70's.
Click to expand...
 
Yes that just gets you in the door, the average then over working life determines the amount you get and you must meet some other conditions, it's all changing too though.

Apply for your contribution record and when you get it pop into a citizens information office and they will work it out for you.
 
The starting point is to check your PRSI history with the Dept of Social Protection. Their records office is based in Buncrana. If you have a PCP Card then you should be able to do it online under www.welfare.ie.
Under current rules you do have to have a minimum of 520 PAID contributions. This would get you at least the minimum State Pension of 40%. For women (mainly) who were out of the workforce minding children prior to 1994 they will get credits for those years, but again we await the details which are expected next year.
There are changes due to happen in 2020 around the proposed move to a Total Contribution Approach (TCA) but we do not yet have clarity of the minutiae.
 
Odea said:
She left work when she got married in 1976 and worked in the family home as a mother to our children.

She went back to work in 1999
Click to expand...

Could she possibly be eligible for the Homemaker's Scheme from 1994(year it was introduced) until 1999 when she went back to work?
Homemaker's Scheme is designed to
ignore gaps when
working out your yearly average of PRSI contributions
for State Pension (Contributory).
Click to expand...
.
I can't post the link to download the pamphlet as I have less than 10 posts, just Google for Homemaker's Scheme Ireland.
 
asdfg said:
Don't know if this is in the right forum
I applied to get the contributory pension. I have 420 full rate social insurance contributions I need 520.
I have a few questions
1. Is there anything I can do to bring my 420 contributions up to 520 ?
2. Can I make voluntary contributions ?
3. Will I qualify for the state pension under the new total contributions approach expected from 2020 ?
4. Under the new approach do I still need 520 full rate contributions?
Click to expand...

1. I would certainly call them and ask about all of your options. They may give you information that could be missed here on an internet forum.

2. Probably not, because -
To be eligible to make voluntary contributions you must:

  • Have at least 520 PRSI contributions paid under compulsory insurance in either employment or self-employment
But again, call them, rules may be different for those on long term sick leave and/or a disability.

3. and 4. I believe the rules are still being finalised and edited. I guess we may not know the final criteria until Budget of October 2019?
 
Lisboa said:
Could she possibly be eligible for the Homemaker's Scheme from 1994(year it was introduced) until 1999 when she went back to work?
Homemaker's Scheme is designed to .
I can't post the link to download the pamphlet as I have less than 10 posts, just Google for Homemaker's Scheme Ireland.
Click to expand...

homemakers scheme is only for the averaging to determine what level of pension you get, you still need 520 minimum contributions to qualify in the first place.
 
shweeney said:
homemakers scheme is only for the averaging to determine what level of pension you get, you still need 520 minimum contributions to qualify in the first place.
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His wife has (or believes should have) a record of 14 years worth of contributions, comfortably more than the 520 minimum.
 
shweeney said:
homemakers scheme is only for the averaging to determine what level of pension you get, you still need 520 minimum contributions to qualify in the first place.
Click to expand...

My wife returned to work in the year 2000. Between 2000 and next year 2019 (when she reaches age 66) she will have a mix of 19 years paid and credited contributions. She also worked for about 8 years back in the 1970's. So in total she could have 27 years of paid & credited contributions over her working lifetime.

Is it possible when the "averaging" calculation takes place that she could end up with a lesser pension by including the 8 years from the 1970's. Is it better not to include them?
 
Tintagel
You cannot choose to ignore certain years. The averaging is based on total years in the PRSI system, from when she first took up employment to the December prior to her 66th birthday. So take the total years of paid and credited contributions and divide this by the number of years in the system from back in the 1970’s. This gives you the average number of contributions and depending on this figure she can determine what % of the full State Pension she will get (based on your information I guess circa 90%).
 
Tintagel said:
My wife returned to work in the year 2000. Between 2000 and next year 2019 (when she reaches age 66) she will have a mix of 19 years paid and credited contributions. She also worked for about 8 years back in the 1970's. So in total she could have 27 years of paid & credited contributions over her working lifetime.

Is it possible when the "averaging" calculation takes place that she could end up with a lesser pension by including the 8 years from the 1970's. Is it better not to include them?
Click to expand...

Has she got a copy of her Social Insurance record ? If so, are the years from back in the 1970s included ?
 
Once you have 520 contributions, credited contributions will then be added but if you have less than 520 credited contributions will not be added. Your total contributions are divided by no of years from date of your first employment to the December before your 66th birthday.
If not eligible for a full pension she might just fair out better getting qualified adult on your pension if you have one.
 
There are also 2 bins in social welfare with p35s they were unable to process years ago. If you worked somewhere in the 70s and it is not showing up on your records they can check for you.
 
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