Irish State Pension: Average, TCA....and ”Alternative Average”

[Des Pondent]

It will reduce most people's pension entitlements, and, certainly not increase, anyone's.

I started work at 16 while still at school so my working life will span 49 years, under the average rule I won’t qualify for a full contributory pension at 66.

Under total contributions, I easily qualify for the full contributory state pension.

I think there are many like me.

 

[Allpartied]

I started work at 16 while still at school so my working life will span 49 years, under the average rule I won’t qualify for a full contributory pension at 66.

Under total contributions, I easily qualify for the full contributory state pension.

I think there are many like me.

Total contributions has always been available as a means of qualifying for the state pension. . It's not being touched, it's the average rule which is being abolished.
Previously, you could choose whichever was the most beneficial. So, in your circumstances , you're not better off.
But the nurse who came over from India, 20 years ago, to work in our public hospitals, and who could qualify, under the average rule, will see her pension reduced to a pittance.

 

[Conan]

Total contributions has always been available as a means of qualifying for the state pension. . It's not being touched, it's the average rule which is being abolished.
Previously, you could choose whichever was the most beneficial. So, in your circumstances , you're not better off.
But the nurse who came over from India, 20 years ago, to work in our public hospitals, and who could qualify, under the average rule, will see her pension reduced to a pittance.

All that might be true, but it's hard to argue that the TCA is not more equitable. You get a State Pension which is purely based on your years of contributions, so those with a 40 year history get a full pension whilst someone with only a 20 year history gets 20/40ths (50% Pension).
It is hard to justify under the Average method that someone with say 10 years service could still get a full pension whilst someone else with say 30 years might get less than a full pension because of the Average calculation.

 

[Allpartied]

All that might be true, but it's hard to argue that the TCA is not more equitable. You get a State Pension which is purely based on your years of contributions, so those with a 40 year history get a full pension whilst someone with only a 20 year history gets 20/40ths (50% Pension).
It is hard to justify under the Average method that someone with say 10 years service could still get a full pension whilst someone else with say 30 years might get less than a full pension because of the Average calculation.

It is equitable and it does bring Ireland into line with most other states in Europe. But it's a very blunt tool.
It is going to create a lot of anomalies and a lot of poverty.
Some people will have only 10 years to get arrangements in place to supplement a hugely diminished state pension. Or they will become dependent on other welfare payments.
Where is the plan to offer people the opportunity to buy back years or purchase additional years. What about reducing the 40 year total, in order to help those who came here later in life, often from countries which have negligible pensions.
The UK changed it's pension system, but is allowing people to back pay to 2006, in order to manage the changeover.
This just seems to me to be another example of cost cutting, without examining the implications for society as a whole. Govt is not just an accounting job. It needs to look after all of its citizens.

 

[Marsupial]

It is equitable and it does bring Ireland into line with most other states in Europe. But it's a very blunt tool. It is going to create a lot of anomalies and a lot of poverty. Some people will have only 10 years to get arrangements in place to supplement a hugely diminished state pension. Or they will become dependent on other welfare payments.

They have the option of applying for the N-C pension if their "hugely diminished" C-P isn't large enough.

 

[Allpartied]

They have the option of applying for the N-C pension if their "hugely diminished" C-P isn't large enough.

I guess that is what will happen. So lots of stress, anxiety, bureaucracy, political angst and, virtually, no benefit to anyone.

 

[Marsupial]

I guess that is what will happen. So lots of stress, anxiety, bureaucracy, political angst and, virtually, no benefit to anyone.

Well, as someone who has strongly supported the changes ever since I first read the Green Paper on Pensions back in 2007, I'm delighted to see them, belatedly and slowly, coming into effect!

 

[Black Sheep]

With those years you spent in the UK you will get your UK pension assuming you paid your NI contributions.
Have you checked those out and perhaps you can still top them up to increase your pension.