# PRSI & State Contributory Pension



## coastguard (10 Dec 2012)

Hi 

I am recently Retired from Public Service at the age of 53. Regarding PRSI I have 427 contributions made. Am I correct that I will now need 520 contributions to qualify for the State Pension at age 66.

If I were to get work for say 2 days a week how how long would I have to work to make up the shortfall.

Also somebody mentioned that I could make volunatry PRSI contributions to makeup shortfall, is this correct as an alternative to the above.

Hoping that somebody on here might be able to throww some light on this for me please.


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## leroy67 (10 Dec 2012)

Hi Coastguard.

when did you join public service, prior to 95 or afterwards, were you paying a full or reduced prsi contribution.


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## coastguard (11 Dec 2012)

Hi Leroy67

Started in 1980 

Reduced PRSI 1980 - 83

1 year off

Reduced PRSI 1984 - 93

Full PRSI 1993 to 2011 

Thanks for your help


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## Black Sheep (11 Dec 2012)

As you started paying full rate PRSI in 1993 you should have over 900 contributions up to 2011 unless you have had a long break somewhere.

As you will be applying for your pension after 2020 the pension age will be 67 and it is proposed that pension will be calculated on the number of years worked. A full State pension will be payable at 30 years worked. (I assume that means paying full rate PRSI, in your case this appears to be around 18 years at present)

Are you looking for work at the moment. Any employment you get, and paid over E40.00 per week would have a PRSI contribution paid (regardless of the number of hours or days you work)
Are you signing for credits at present?

Perhaps voluntary contributions may be worth looking at.

The first thing to do is to request a copy of your contribution record


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## leroy67 (11 Dec 2012)

Hi Coastguard,

Have to admit I'm a bit confused, what Black Sheep says is correct around contributions should you have paid full rate PRSI from 1993 until 2011.

Employees of the Civil Service and the Public Service are in what is known as modified insurance. They pay a lower rate of contribution and they are insured for certain Social Insurance Benefits only and not state pension.

New entrants to the Public Service i.e. from 6 April 1995 are insurable at Class A and are entitled to based on service 50% of final salary less state pension upon retirement.

Why reduced PRSI until 93 and Full from then?


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## coastguard (13 Dec 2012)

Hi All

Based on your feedback (much appreciated) I double checked my PRSI and I see now that I am class D not class A as I thought.

So I have no entitlement to the State Pension?

coastguard


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## leroy67 (13 Dec 2012)

no entitlement to state pension is correct Coastguard but you won't have it deducted from your employers pension either, in reality you are better off than civil servants who joined after 95, as good as their benefits are still not a good a deal as what you're entitled to!!


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## trigger3 (14 Dec 2012)

My mother is retiring next February when she turns 65 and has the following query if anyone can help: 

She has recently received notification from welfare that she has been awarded a reduced pension of €114.00 p/week based on the following record:

She has 825 Irish and 674 EU contributions in total from 1964 to 2011. She also will have 52 contributions for 2012 and 6 for 2013 by the time she retires but which don't appear as part of the calculation when calculating the weekly amount due. Can anyone answer the following please:

1) How is this reduced rate calculated and is this amount correct?
2) Why have the contributions for 2012 and 2013 (52 +6) been omitted when calculating the PRSI contributions made to date and hence the weekly amount due? This would bring Irish contributions up to 825 + 58 = 883
3) If required and beneficial is it possible to buy Irish voluntary contributions to increase the weekly payment due, and if so how much do these cost or where can I get required information.

She is conscious that any appeal on the award must be made within 21 days.

Any help would be greatly appreciated.


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## gipimann (14 Dec 2012)

As your mother is reaching 65 years, the pension she's being awarded is the State Pension (transition), which lasts for 1 year and is then replaced by the State Pension (Contributory).

The qualifying conditions for State Pension (Transition) can be found at this link:

http://www.welfare.ie/EN/Schemes/Pension/StatePensionTransition/Pages/spt.aspx#Rules_2

Note the section on the average contribution requirement, where the number of contributions made are divided by the number of years since she first entered insurable employment. 

The 2013 contributions will not count for this pension, as it is only the contributions up to the tax year before the 65th birthday that are counted. The 2012 contributions should be counted which might change the average slightly.

The information at the bottom of this webpage gives more information on how contributions from Ireland and EU are used to calculate entitlements in Ireland.

http://www.citizensinformation.ie/e...cial_insurance_contributions_from_abroad.html


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## trigger3 (14 Dec 2012)

That's great, thanks for that.


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## kbie (15 Dec 2012)

trigger3 said:


> is it possible to buy Irish voluntary contributions to increase the weekly payment due, and if so how much do these cost or where can I get required information.
> 
> .


 
I would also be interested to know is it possible to purchase these to increase a Contributory Pension.


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## gipimann (15 Dec 2012)

Here's information on voluntary PRSI contributions

http://www.welfare.ie/EN/Topics/PRSI/Pages/volcons.aspx


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## Black Sheep (15 Dec 2012)

Her 2012 contributions have not been included in her calculation as they have not been completed until after December 2012 so therefore as gipiman says they may increase her pension her rate of pension slightly when they are added to her current total.

However it may be worth having her State pension reviewed (at age 66) as she will have a further 52 credits added in 2013 (based on her Transition pension).
This may entitle her to a (slightly) still higher rate of State pension.

She cannot make voluntary contributions while she is in receipt of pension.

I would not recommend an appeal as this takes forever. If you feel the figures are incorrect make your case by requesting a review of the problem area.

As you do not state whether she is single married or widowed we do not know if she may be entitled to a QA of her husband's pension which may be a higher rate.


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## coastguard (17 Dec 2012)

Hi 

Getting back to my original query here. If I got work (part time) from the HSE would I pay a "D" or an "A" PRSI Rate?

If it was the "A" Rate could I build up Credit for a State Contributory Pension?

Thanks Again

coastguard


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## Black Sheep (17 Dec 2012)

It's a bit like looking into a crystal ball at present until full and clear information is given.

Any employment you now get will be subject to class A contributions and you have 14 more years to go to State Pension age. So assuming you worked part-time (or even full time) for the next 14 years you may be entitled to 14/30ths of pension rate at that time. Or perhaps they may go down the mixed rate pro-rata route.

That's my understanding of it.


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## coastguard (18 Dec 2012)

Hi Blacksheep


"Or perhaps they may go down the mixed rate pro-rata route."


Could you explain what you mean by the above please.

Many Thanks

coastguard


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## Black Sheep (18 Dec 2012)

Mixed rate pro-rata is where all contributions both Class A and D are combined to work out the amount of pension payable.
It's a long winded complicated method but from my calculation it would work out at a rate of about E63 per week (plus the appropriate for QA if there is one) based on current rates and regulations.

Go to welfare.ie for further info


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## trigger3 (18 Dec 2012)

Thanks Black sheep, useful information.


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## trigger3 (4 Jan 2013)

If a person retires upon turning 65 but continue to work only 5 hours a month, do they lose any entitlements to a state transition pension?


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## trigger3 (4 Jan 2013)

If a person retires upon turning 65 but continue to work only 5 hours a month, do they lose any entitlements to a state transition pension? 

Would I be right in saying that they can earn up to €38 a week from employment income without having their full entitlement to state transition pension affected?


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