How to calculate contributions for contributory OAP

I will be 66 next month and am applying for my pension.

I requested a contribution statement which shows I have 2022 Combined Reckonable Contributions and Credited Contributions. I think I need about 2080 to qualify for a contributory pension. I was a public servant for 31 years in my previous job.

I have been receiving carers allowance for the past 8.5 years. The statement shows that some of my long term care contributions have not been included towards the total. Does anyone know why? I've attached the document if anyone can figure it out. It's all very confusing!

Thanks

"Under the scheme, if you have been a full-time carer for at least 20 years (1,040 weeks), you can get Long-Term Carers Contributions to help you qualify for the https://www.citizensinformation.ie/en/social-welfare/social-welfare-payments/older-and-retired-people/state-pension-contributory/ (State Pension (Contributory))."

This seems to imply that you need to be a carer for 20 years + to get reckonable credits.

If this is correct you could make voluntary contributions for 1 year to bring you up to 2074.

Ole One said:

I think I need about 2080 to qualify for a contributory pension. I was a public servant for 31 years in my previous job.

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2,080 reckonable contributions/credits is what is needed for the full rate contributory pension. I don't know if/how your employment as a public servant might influence matters. Someone else (in particular @S class) might know.

Ole One said:

I have been receiving carers allowance for the past 8.5 years. The statement shows that some of my long term care contributions have not been included towards the total. Does anyone know why?

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Might this be relevant?

Once you have reached a minimum of 1040 weeks (20 years) of Long-Term Carers Contributions, they will be included in calculations for your State Pension (Contributory).

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Edit: hah - I knew that @S class would be on the case...

For what it's worth 2,022 reckonable contributions/credits would get you 97% of the full pension assuming that you meet the other qualification criteria.

Ok, so I need 58 more contributions. Is it worth my while buying these or will I still get the Contributory pension at a reduced rate?

If you bought one extra year between 2021 and 2024, this would cost you 500 euro.

You would gain an extra 375 euro per year pension for life.
So you are gaining after less than 2 years into your pension.
(Slightly longer if you are taxed on your pension)

The figure in the bottom right hand corner box of the statement (Total of Combined Reckonable Contributions and Credited Contributions for Pension) is the critical one. I believe that this is 2,022 and so as @ClubMan points out this would get you 97% of the total. To determine whether or not it is worth purchasing voluntary contributions (assuming it is possible for you to do so) we would need to know the cost as there are various ways in which this can be calculated. Rather than speculating, it might be best to contact the Dept of Social Protection and ask them for the cost to make up the difference. The contact details are at the end of this page

Once you have a cost figure, it's easy to calculate the cost vs benefit - just post here and someone will assist if you require it. Would also need to know if you will be claiming pension for a spouse.

Not to make it too complicated, but when buying voluntary contributions, you pay by the year. So assuming you are eligible you could look at buying 45 or 52 or 58 additional contributions. ( I specify these numbers as 45 would be the balancing figure for 2019 where you already have 7, 52 would be 1 fully year and 58 is the total number you need which would require purchasing two years worth.) 2019 may be out of scope however. I hope that this makes sense.

I think you will need to get at least 1 paid class A contribution to be eligible for voluntary contributions as your last paid contribution is over 5 years ago. Employment income of 38 euro will get you the necessary contribution.

Thanks guys for all your help! I'll give them a ring on Monday about buying contributions and report back!

I can't work as I'm a full time carer for my mother,

No joy on the voluntary contributions. Should have applied last year. I asked if I were to get some paid contributions could I then apply and was told no. You can't apply in the year you're turning 66.

I have applied for home carer contributions so we'll see how that goes. Fingers crossed!

Ole One said:

You can't apply in the year you're turning 66.

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That's the old rule. You can now apply up to age 70.

So today I got a letter stating that I have been awarded Home Caring Periods from 2016 to 2025 and another letter stating that I have been awarded Long Term Carers Contributions (which is no good to me as I need 1040 contributions and I only have 449).

I'm still confused! I just received an updated statement and it's exactly the same as the old one. Should I just apply for the pension and hope they take into account the Home Caring Periods?

Ole One said:

I requested a contribution statement which shows I have 2022 Combined Reckonable Contributions and Credited Contributions. I think I need about 2080 to qualify for a contributory pension.

Click to expand...

Ole One said:

So today I got a letter stating that I have been awarded Home Caring Periods from 2016 to 2025

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My relevant contribution statement said my Total Pension Contributions was 2009, but I still qualified for the maximum contributory pension because I also had 2 and a bit years of Home caring noted on my statement.

That's good to know! I was worried because they hadn't included it in the total contributions. Hopefully they will be taken into account!

Ole One said:

Should I just apply for the pension and hope they take into account the Home Caring Periods?

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Yes apply now. If the pension falls short of what you are expecting, you can reject it and reapply at a later date when you have received more contributions. You must reject the pension before you receive any payments into your bank account or at your local post office. So you need to act quickly after you get your pension award letter.

Thanks everyone! I bit the bullet and submitted my application so fingers crossed!

Good news! Just got a notification that I have been awarded the full rate contributory pension! First payment on April 11th.

That was very quick as I only applied a week ago!

Thanks everyone for all your help! One last question though. Do I have to inform the Carers Allowance section that I have been awarded the pension? Will they automatically know? I believe that the payment is halved once you receive the pension?

Ole One said:

Do I have to inform the Carers Allowance section that I have been awarded the pension?

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Change of circumstances​

If your circumstances change, you must tell the Department of Social Protection (DSP), as it may affect your entitlement to Carer’s Allowance.

You may be able to update your details online using MyWelfare.

If you can’t update your details on MyWelfare, you can tell the DSP about your changed circumstance by phone, email, or post (see contact details under ‘More information’ below).

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Thanks! Can I defer my pension until after the 5th June when the Carers Support Grant of €2,000 will be paid? Don't want to miss out on that!

Ole One said:

Can I defer my pension until after the 5th June

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You can defer taking the pension to up to 70 - but I don't know what "granulatity" this operates at and if it might be monthly?