Early Riser
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If John had never paid PRSI previously, but just worked for 20 years as a teacher, what would his pension be?
Do you know what that calculation would be?
So (ignoring salary increases), with 40 years of service, a 60K salary and assuming the maximum state pension (SP) is 12K:Pension:
In the case of a teacher paying A Rate PRSI, the pension is 1/200th of the pensionable remuneration that does not exceed the maximum personal rate of State Pension (Contributory) multiplied by 3.333333 plus 1/80th of the pensionable remuneration which exceeds that figure for each year of pensionable service. This is known as co-ordinated pension.
I don't think that's the OP's circumstances - he said moving to teaching after 20 years of other PRSI - not first PRSI ever. I would imagine first PRSI ever at 45 would be very unusual unless a person was newly arrived in Ireland/the EU. Unfair situations with average years PRSI are not all that unusual though (it's quite a bugbear of mine...)it does seem that in the very unusual and specific example raised by the OP (a person taking up teaching for the first time at circa 45 and this is the first insurable employment),
I don't think that's the OP's circumstances - he said moving to teaching after 20 years of other PRSI - not first PRSI ever. I would imagine first PRSI ever at 45 would be very unusual unless a person was newly arrived in Ireland/the EU.
It was a hypothetical question but I asked how someone would fair who had 20 years prior PRSI contributions. I wanted to know if they would get more of it, in effect, the prior 20 years worth of payments would be lost.I agree it would be very unusual and I suspect it was being raised hypothetically by Purple. Nevertheless he did ask specifically how someone would fare in this scenario as opposed to someone who had 20 years prior PRSI.
I agree with you observations about the averaging rule.
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