State Pension Entitlement

[Sarenco]

Surely that would just be another example of an older cohort being advantaged over their younger peers?

 

[fayf]

Budget 2020 planning is well underway, so we won’t have to wait long for news on this, as some clearer indication of the path forward, will need to be given by budget day in October.

This is one of those very far reaching and impacting issues, where it may take an extended period of debate and changes, before we see the final details emerging, which i’d guess will not be until the new year.

 

[Conan]

I expect we will see some clarity well in advance of Budget Day. The Minister has indicated that the 1/40th Rule will apply, which is more equitable that the current system. This is partly wrapped up in the proposed Auto Enrollment scheme, but the proposed SW changes are long overdue.
There was a suggestion that they may introduce a “transition period” for a few years after 2020, but again we will just have to wait and see.

 

[Mikey9]

Under current rules (due to change in 2020 or 2021) you must have an average paid/credited contribution rate of more than 48 per annum from when you first entered the workforce up to the Dec before your 66th birthday. If your yearly average is less than 48 pa then you get a reduced rate. So for example if your average is between 40 and 48 then you get a 98% Pension, if between 30 and 39 then you get a 90% Pension. You need a minimum of 520 paid contributions (10 years) to get the minimum pension of 40%.

I dont understand the last line . Does or is it suppose to mean that you need a maximun of 520 paid contributions to get the maximun pension of €248.30

 

[Conan]

No.
In order to get any State Pension you need at least 520 PAID contributions. If you have the minimum number of contributions, then the actual amount of the State Pension you will get will be the greater of:
- that produced under the “total and average” calculation (as I outlined in this post), or
- 1/40th of the State Pension for each year of contribution

 

[Mikey9]

No.
In order to get any State Pension you need at least 520 PAID contributions. If you have the minimum number of contributions, then the actual amount of the State Pension you will get will be the greater of:
- that produced under the “total and average” calculation (as I outlined in this post), or
- 1/40th of the State Pension for each year of contribution

I have 299 contributions Have you any idea of value ?

 

[jim]

there is also something about If they worked in other countries for a period of time (e.g. UK) and have a pension entitlement there i think the DEASP will assist them in applying for those pensions and then reduce the Irish pension by that amount so they still only receive the top up

Its possible to claim state pension in more than 1 country in certain circumstanses.
Can claim full state pension in uk and ire in ltd circumstances. Otherwise maybe you are correct in that contribs in 1 country applies in another in claiming that countries pension.

 

[Conan]

I have 299 contributions Have you any idea of value ?

As stated earlier, you need a minimum of 520 PAID contributions to qualify for any State Pension. If less than 520 you get nothing.
The only exception would be the “Pro Rata Pension”. That’s where you retire from say a B of D class PRSI role that does not qualify for the State Pension (eg a pre 1995 Civil Servant) but you have some A class contributions from earlier in your career. In this case you need at least 260 PAID contributions to get a minimum pension.

 

[Bronte]

Its possible to claim state pension in more than 1 country in certain circumstanses.
Can claim full state pension in uk and ire in ltd circumstances. Otherwise maybe you are correct in that contribs in 1 country applies in another in claiming that countries pension.

Yes it is true for my DH that his contributions in Ireland counted towards his pension entitlements to his current state pension. Not as regards amounts but as to eligibility as regards years. Ireland has written to him to tell him he will receive an Irish pension in the future when he is old enough. That will be based on his service in Ireland.

 

[Mikey9]

As stated earlier, you need a minimum of 520 PAID contributions to qualify for any State Pension. If less than 520 you get nothing.
The only exception would be the “Pro Rata Pension”. That’s where you retire from say a B of D class PRSI role that does not qualify for the State Pension (eg a pre 1995 Civil Servant) but you have some A class contributions from earlier in your career. In this case you need at least 260 PAID contributions to get a minimum pension.

I should qualify for A Pro Rata Pension as I had Class B contributions prior to retirement and have 299 ( between Class A and S) contributions since. If I increased this number beyond 350 would I get more than the minimun pension. Does the percentage increase if you have more contributions ?

 

[Conan]

I should qualify for A Pro Rata Pension as I had Class B contributions prior to retirement and have 299 ( between Class A and S) contributions since. If I increased this number beyond 350 would I get more than the minimun pension. Does the percentage increase if you have more contributions ?

I’m a little confused about your situation.
if you retired from a Class B job (not normally entitled to a State Pension) but have prior A Class contributions (minimum 260) then you may be entitled to a Pro Rata Pension. The calculation is as follows:
A Class contributions divided by total of all contributions (A plus B etc) x Full State Pension.
So for example if your prior A Class contributions were 299 and your total number of contributions (A + B ) were say 2080 (equivalent to 40 years), then your Pro Rata Pension would be 299/2080 x €248.30

Hope this clear.