Modified Contributions

[justsally]

Looking for precise information on this question please.

My husband has Irish and EU contributions which help towards a state pension. However, what I am surprised to see is that his many years of modified contributions are not taken into account. I thought the number of A contributions, A credited contributions and modified contributions were totalled when obtaining the yearly average. Am I missing something here. Can someone clarifify this for me.

Thanks in advance

 

[gipimann]

Modified contributions do not count towards pension qualification, so are not included in determining yearly average.

Have a look here at the State Pension page on DSFA site.

 

[justsally]

Thanks for your reply.

This is the information from your reference site that has me confused:-
You must have:

• At least 260 paid contributions at the full rate since entry into insurance or 1953, whichever is later
• A mixture of full and modified contributions, which when added together give you a yearly average of 10 (for the State Pension Contributory) from the time you first entered insurance or 1953, whichever is later, to the end of the contribution year before your 66th birthday.
• Failed to qualify for a pension under EU regulations or under reciprocal arrangements with other countries or only qualified for a pension at a lower rate than this pro-rata pension would give you.

If you meet all these requirements, you may qualify for a pension proportionate to the number of contributions that you have at the full rate. To take a very simple example, if you worked for 40 years up to age 66 and 10 of those were in the private sector, you would get one-quarter of the normal pension.
If you reach pension age on or after 6 April 6 2012, you will need to have a total of at least 520 full and mixed contributions paid and at least 260 of these must be full contributions.
What happens to people with mixed insurance is that all contributions at the full and modified rates are added together. The average is then measured in the normal way. If you have an average of at least 10 then you may qualify. Then the number of full contributions is divided by the total number of contributions to find out what proportion are full rate; you then get that proportion of the pension.

 

[gipimann]

Sorry had missed that small but important piece! Modified contributions on their own don't qualify towards a state pension.

Did your husband get his PRSI record from Dept of Social & Family Affairs to make sure that all the records are up to date? Might be worth contacting DSFA to check if you haven't already done so.

Central Records Section, Gandon House, Amiens St, Dublin 1.

 

[justsally]

I've been working on this for some time and have done my homework - can't expect AAM to do everything for me.

I have done some sums: The Irish and EU contributions have been totalled, and added to the A credits and the pension amount has been assessed through that formula.

I had expected that the Irish and EU contributions would be totalled and combined with the modified contributions to obtain the pro rata pension through that formula.

I am trusting that, if it's within their remit, Social Welfare have looked at each formula and have applied the one which most benefits my husband.

 

[Black Sheep]

I am a bit confused here. Does your husband have Irish A contributions, Irish D contirbutions, Irish A credits and EU contributions.
Have you received the print out from the Records Section of all those contributions

The possibility is that the modifieed contributions if used would have the affect of reducing the rate of pension he would receive.
If the modified (state employment) was prior to 1991 they can be ignored for pension calculation.

Have you requested a copy of the calculation done by the Pension Office

 

[justsally]

I am a bit confused here. Does your husband have Irish A contributions, Irish D contirbutions, Irish A credits and EU contributions.
Have you received the print out from the Records Section of all those contributions

(1) Yes he has those contributions. (b) Yes I have received the information from Records Section.

The possibility is that the modifieed contributions if used would have the affect of reducing the rate of pension he would receive.

That had occurred to me. See my comment about SW making the best assessment in our case. "I am trusting that, if it's within their remit, Social Welfare have looked at each formula and have applied the one which most benefits my husband"

IIf the modified (state employment) was prior to 1991 they can be ignored for pension calculation.

He has both pre and post 1991 modified contributions: But that's an interesting piece of information, I hadn't come across that on any SW related site/s. Can you direct me to where I can find this. (just curious)

Have you requested a copy of the calculation done by the Pension Office

A work in progress

Thanks for your help

 

[Black Sheep]

See welfare.ie Entry into Insurance.

As I stated in your previous post on this subject I am working on pension entitlements on behalf of a few friends who have mixed rates of contributions.
Those who returned to work in the private sector prior Apr.91 had their previous contributions (modified rate) disregarded, and date of entry into insurable employment was deemed to be the date they paid their first A contribution ie. 1989. Therefore they received a full pension

 

[justsally]

See welfare.ie Entry into Insurance.
Those who returned to work in the private sector prior Apr.91 had their previous contributions (modified rate) disregarded, and date of entry into insurable employment was deemed to be the date they paid their first A contribution ie. 1989. Therefore they received a full pension

So basically because the years paying a modified contribution are being ignored their yearly average is increased, thereby their chance of a higher pension is much better. Thanks for clarifying that.

If only that applied in our case. My husband went from private, class A to public, modified. A reverse situation, he needs his early years A contributions.

 

[Black Sheep]

Have not yet requested a calculation from pension office as there is still one more hurdle to jump. I am still trying to get proof of modified contributions (WOPS) paid, more like pulling teeth!!!!!!!!!!