Irish state pension contributions

E

edladd

Registered User
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1
Hi all,
I've recently got the letter breaking down my contributions to the Irish state pension over the years. However, they are not taking into account some of them - can someone clarify this for me?

i. I have 242 Modified rate contributions from when I worked in a state body. These are not being added to the total, but the years I worked there are still being used to reduce the average contributions per year. Is this correct?
ii. The years I worked in the UK have no contributions against them - even though there is a column for EU contributions?

If both of these had been included, it would bring me up to the next "average weeks per year" break-point. If I understand the EU contribution rules - 90% of my contributions would be in Ireland (if I include the modified contributions) - so I would be entitled to 90% of the pension from Ireland, and 10% of a pension from the UK?

If the modified contributions have been used correctly, then the rest is moot I think. If someone could explain this I would be very grateful.

Thanks in advance,
Ed
 
edladd said:
Hi all,
I've recently got the letter breaking down my contributions to the Irish state pension over the years. However, they are not taking into account some of them - can someone clarify this for me?

i. I have 242 Modified rate contributions from when I worked in a state body. These are not being added to the total, but the years I worked there are still being used to reduce the average contributions per year. Is this correct?
ii. The years I worked in the UK have no contributions against them - even though there is a column for EU contributions?

If both of these had been included, it would bring me up to the next "average weeks per year" break-point. If I understand the EU contribution rules - 90% of my contributions would be in Ireland (if I include the modified contributions) - so I would be entitled to 90% of the pension from Ireland, and 10% of a pension from the UK?

If the modified contributions have been used correctly, then the rest is moot I think. If someone could explain this I would be very grateful.

Thanks in advance,
Ed
Click to expand...


Hi edladd, I have been discussing this pension in another thread, it's a bloody minefield and I am not an expert, but I hope this will help you.

Just one quick question at first glance, did you inform them that you were employed in the UK?

You do not need to contact the foreign social insurance authorities directly. When you apply for your Irish pension, once you have informed the Department of the country/countries in which you previously worked or lived, we will contact the relevant foreign authorities on your behalf in relation to your pension entitlements. You do not need to make a separate pension claim to those countries.

That's the first thing you need to clarify, if you informed them of the dates of employment in the UK (Maybe with your relevant PPS number in the UK), then they should have contacted the relevant authorities.

The modified stamps are B,C and D and not a PRSI contribution to the "State Pension", so the years are indeed being used, however the modified stamps appear to count if they are calculating your entitlement under what is called "mixed insurance":

20. How do I calculate my Mixed Insurance Contributory Pension Entitlement?

"Step 1

First calculate the Theoretical rate of pension. The Theoretical rate of pension is the personal rate of pension that you would qualify for if all your social insurance contributions and credits (full and modified) were treated as full-rate contributions. You add your full-rate and modified rate contributions and credits together and divide the total by the number of years since you started insurable employment to get your (Theoretical) yearly average. This yearly average determines what rate band of pension you qualify for and this gives you your Theoretical weekly pension amount.

Step 2
The following formula is then used:


Theoretical personal rate of pension X Number of full-rate contributions + credit
Total number of full and modified rate contributions + credits

Example:
A person has 445 full-rate contributions (paid + credited) and 1546 modified rate contributions (paid + credited), over a 49 year period since they first entered insurable employment. They do not qualify for standard State pension (contributory), as they only have a yearly average of 9, based on 445 full rate contributions ÷ 49 years.

An entitlement to Mixed Insurance Pro-Rata State pension (contributory) is then assessed

--------------

A minefield, but the first thing is to see did they get the relevant information from the UK.

As I said, not an expert, this is only coming in in relation to another issue - it's a deep learning curve though, hope this is of some use to you.

Good Luck.
 
edladd,

It is difficult!
............
Since you worked in Uk might be no harm to find out your Uk( prsi type) ie National Insurances you have in UK , these can if need be, be added to bump your ROI contributory pension.

BUT . if you worked nuff years in Uk ,and depending on your age, it might be worth seeing can you acquire 2 contributory pensions .
ie. One from Uk if you worked or have bought nuff contributions to take you over 10 years contributions.@ 10 years you will get 10/35ths of £150 = £43 per week.
ie. One from Roi , again what average annual contributions have you made or will average out from now on to pull you into getting % of contributory pension.eg @worst you get a % .

Go in under HMRC in Google ,they have a fairly easy clear advice.

Conclusion.
It may be you can have 2 pensions that end up at more funds for you than one.
Good luck with the trawl !
 
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