Considering returning to Ireland to reach 520 contributions

Peterus

Registered User
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I've been reading about State Contributor Pension and working overseas.

http://www.citizensinformation.ie/e...cial_insurance_contributions_from_abroad.html
http://www.welfare.ie/en/pages/qualifying-for-state-pension-contributory.aspx#q11
http://www.askaboutmoney.com/threads/query-on-claiming-state-pension-from-outside-ireland.136492/

I've been living in Canada since 2010 and working towards citizenship. Once I have citizenship (2 more years) I intend at some point to work in Ireland to accrue the remaining contributions.

There is bilateral agreement between Canada & Ireland
http://www.welfare.ie/en/Pages/1710_Can-I-qualify-for-a-payment-from-both-countries.aspx
I can qualify for pension in both countries

I have 466/520 contributions paid. The remaining 54 to be paid before reaching the age of 66.

I apologize for the following questions but I can't seem to find an explanation :S
I'm not really clear on how the contributions are accrued. I know I paid PRSI all those years, is there a euro value for a contribution? €x = 1 contribution? Or is is based on the fact that I was in fulltime employment? 1 month = 1 contribution?
How can I determine how long I have to work for to make 54 more contributions.
Is there a difference come retirement for a person with 520 and someone with 620?
Are more better?
Does the amount of PRSI I paid factor into how much I will receive after 66?

I also have a very poor private pension account being managed to some degree by New Ireland Assurance. I'm wondering if I should move that to Canada and manage the money here (that might incur income tax in Ireland)?
 
Hi Peterus, you didn't mention this link in your list of pages, worth a look:

http://www.citizensinformation.ie/e...etired_people/state_pension_contributory.html

I've been living in Canada since 2010 and working towards citizenship. Once I have citizenship (2 more years) I intend at some point to work in Ireland to accrue the remaining contributions.
According to the above page, the bilateral agreement between Ireland and Canada allows you to combine insurance contributions from both countries.

I have 466/520 contributions paid. The remaining 54 to be paid before reaching the age of 66.
Bear in mind that as well as the minimum total contributions, there is a minimum average contributions per year requirement. If you meet the minimum requirement, your average contributions per year will affect the amount of your entitlement. The average is (generally) calculated from the first date you started paying PRSI to the year you retire, but there are exceptions.

I'm not really clear on how the contributions are accrued. I know I paid PRSI all those years, is there a euro value for a contribution? €x = 1 contribution? Or is is based on the fact that I was in fulltime employment? 1 month = 1 contribution?
How can I determine how long I have to work for to make 54 more contributions.
There is no monetary equivalent. Contributions are weekly, 52 per year, and all contributions (of a given class) are equal whether you paid €10 or €10,000. To make 54 contributions would take just over a year of full time employment.

Is there a difference come retirement for a person with 520 and someone with 620?
Are more better?
Does the amount of PRSI I paid factor into how much I will receive after 66?
Once you satisfy the minimum total contributions of 520, and the minimum average yearly contributions of 10, the actual average is then taken into account in determining how much you receive. The minimum average of 10 currently entitles you to less than half the maximum pension -- see the table in the link I posted. The monetary amount of PRSI you paid has no bearing, only the number of contributions.

Two things to bear in mind: 1) there are all sorts of additional complicated rules that may apply to you depending on your insurance history, the above is just the most normal, so check out the rules; 2) the eligibility requirements could and almost certainly will change in future -- the retirement age will change to 67 in 2021 and to 68 in 2028; other changes to the rules on minimums and averages have already been proposed to take effect around 2020. As far as I understand it, the rules on averages will go away but you will need 30 years of contributions (1560 in total) to qualify for full pension, and the minimum of 520 will only qualify you for one third of the max. All covered in the link above.

P.S. I am not an expert by any means, just happen to have been doing similar investigations to yourself.

I also have a very poor private pension account being managed to some degree by New Ireland Assurance. I'm wondering if I should move that to Canada and manage the money here (that might incur income tax in Ireland)?
No idea on this one, maybe someone else can advise.
 
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