SW pension & contributions

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sluice44

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SW pension & contributions

To get an 'old age contributory pension', one has to have paid 260 'contributions' in a ten year period to qualify for a pension.

To use an extreme example, if I worked for 5 years from 20yrs old to 25yrs old and never worked again, would I be entitled to a Govt pension at 65?

The '260 contributions rule' may have been or changed.

Sluice
 
For what it's worth the current PRSI contributions rules governing qualification for an old age contributory pension are set out here:

www.welfare.ie/schemes/retired/oacp.html
www.welfare.ie/publications/sw18.html#2

I can't see any "260 contributions over 10 years" condition in there. Where did you get this from? As far as I know if you have PRSI contributions but don't meet the qualification criteria for a full rate contributory pension then you may qualify for reduced rates of payment.
 
Hi O,
I heard the '260 contribution rule' on the radio initially but it's about 1/3 down on the link I provided.

If you reach pension age on or after 6th April 2002, you will need to have 260 paid contributions (effectively 5 years contributions but they need not be consecutive). However, if you were a voluntary contributor on or before April 6th 1997, you need only have 156 paid contributions if you have an average of at least 20 contributions per year.
Click to expand...

Touch wood, I'll be employed for the majority of my working life and won't have to worry about this rule. It was more a question of, 'what if.' I was wondering should I ring the SW and get a letter/cert saying that I paid enough contributions for a pension. I think I have too much free time!!

Sluice
 
I still can't see anything about 10 years there. Anyway, the SW links I posted should allow you to work out how specific real or hypothetical contribution scenarios affect pension entitlements. Also - I guess you probably realise that it's not a good idea to depend mainly or solely on the state pension(s) for retirement income if you can afford to make additional (e.g. occupational, persona, or PRSA pension contributions) arrangements now?
 
Hi O,
You have me doubting myself now. I can't find the 10 yrs rule either in my link but that fact is in my head somehow!

BTW, I've edited my previous reply after O replied. But I think he's edited his initial reply as well. I think a coffee break is called for!

Sluice
 
Sluice44

The answer to your question

"To use an extreme example, if I worked for 5 years from 20yrs old to 25yrs old and never worked again, would I be entitled to a Govt pension at 65?"

is NO.

If you started work at the age of 20 then your working life is taken to be 66-20=46 and you need an average of 10 contributions for each year to qualify for the minimum old age pension (at present 83.70 euro per week). These can be paid or credited contributions.

However if you reach 66 after 2012 the rules change again see O's second link.
or


See also the Pro-rata pension for average of less than 20 in either of the links above.

Just note if you ever worked while you were in secondary school or College during the holidays and paid a PRSI contribution this is taken as your starting point thus extending your working life and increasing the number of contributions required to qualify for the OAP at 66 years of age.
The qualification for Retirement Pension at 65 is different.
 
Old Age Pension, Retirement Pension

I recently established that because I began work age 16 (40 years ago) but after 8 years working and paying 'stamps' and N.I. contributions returned to full-time adult education for 10 years, my OAP would be miniscule because of the averaging across the years on which this pension is based. What are the rules relating to Retirement Pension (i.e., if Retirement Pension is something other than contributory pension fund in one's employment? :eek
 
Re: Old Age Pension, Retirement Pension

The SW link I posted above should explain how this works. If you haven't done so already you should contact SW to ensure that you obtain PRSI credits for your NI/UK National Insurance payments in the past.
 
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