# Job Seekers Benefit and the contributory pension..



## zod (18 Feb 2012)

If you are collecting Job seekers benefit ( as apposed to Job seekers allowance) is there stamps paid toward your contributory pension ?

thanks


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## gipimann (18 Feb 2012)

For each week you sign on, you are awarded a PRSI credit, which can be counted (along with your paid PRSI contributions) when determining entitlement to the Contributory State Pension.  This applies both to Jobseeker's Benefit and Jobseeker's Allowance.

To qualify for a contributory pension, there is a minimum number of paid contributions you must have, in addition to an average number of contributions over a number of years - these can be paid or credited contributions.


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## zod (18 Feb 2012)

gipimann said:


> To qualify for a contributory pension, there is a minimum number of paid contributions you must have, in addition to an average number of contributions over a number of years - these can be paid or credited contributions.



Right so am I right in saying

You need 520 paid contributions* 

Credited contributions only count toward your average.



*If you reach pension age on or after April 6 2012, you will need to have 520 paid contributions (10 years paid contributions). In this case, not more than 260 of the 520 contributions may be voluntary contributions. However, if you were a voluntary contributor on or before April 6 1997 and you have a yearly average of 10 contributions, you may meet the requirement if you have a total of 520 contributions, but only 156 need to be compulsory paid contributions.


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## gipimann (18 Feb 2012)

Yes, you're correct, based on the 2012 rules.


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## hopalong (18 Feb 2012)

A friend hopes to retire in 2022,by then he will have 520 paid a stamps and 520 credited a stamps.What can he hope to collect from his pension.(assuming no future changes to rules and regs).


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## zod (18 Feb 2012)

thanks


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## zod (18 Feb 2012)

hopalong said:


> A friend hopes to retire in 2022,by then he will have 520 paid a stamps and 520 credited a stamps.What can he hope to collect from his pension.(assuming no future changes to rules and regs).



the amount received is based on your average credits per year.

The average is calculated from the first year of employment.

You may get different rates of pension, depending on your yearly average contributions. The table below outlines the various percentage rates.

Yearly average Contributions	Amount of Standard rate pension
48 or more	 : Maximum rate
20-47	   : 98% of maximum rate
15-19	   : 75% of maximum rate
10-14	   : 50% of maximum rate


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## pudds (18 Feb 2012)

@hopalong: to calculate the yearly average, add the total number of paid and credited contributions together and divide by the number of years worked.


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## diem (18 Feb 2012)

But Hopalongs friend hopes to retire in 2022, by which time a total contributions approach is proposed. This will mean that 30 years of contributions will be required for a full pension. 10 years(520 contributions) will get you one third of the full pension. Details are at Welfare.ie


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## hopalong (18 Feb 2012)

so this will mean 1/3 pension plus 1/30 for each of the credited years(520=10yrs) bringing the sum to 1/3 +10/30 of total pension   =  2/3 of pension   would that be correct?


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## gipimann (18 Feb 2012)

hopalong, yes, it appears so from the information on www.welfare.ie

The new framework also proposes a maximum of 520 (10 years) credits that can be counted towards a contributory pension.


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## hopalong (19 Feb 2012)

thanks,i found it all very confusing to work out,also could i ask does a years credit have to be 52 weeks credit or is there a minimum of weeks per year?


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## gipimann (19 Feb 2012)

At the moment, a year's credits means 52 - which is why SW specify the number of credits/paid contributions required instead of the number of years.   The number of years is given as a general guide.  I'm not sure if this may change in the future.


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## valery (20 Feb 2012)

If the average is calculated from the year you started work, would this not seriously effect people who took time out to rear their families in the 70s and 80s.

If they started work after their Leaving in their late teens, took time out, went back into the workplace, then is their average calculated from their late teens to 65/66?

In that case, it could be 48, 49 divided into their paid/credited contributions.


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## gipimann (21 Feb 2012)

The Homemaker's Credit scheme was introduced in 1994 to award credits to persons who took time out of the workforce to raise children.

Homemakers can be awarded PRSI credits for a number of years, which would increase their total & annual average.

More information may be found here:
http://www.welfare.ie/EN/Publications/SW1/Pages/1Whatisahomemaker.aspx


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## valery (21 Feb 2012)

Thanks Gipimann for that.  Yes I know about Homemakers credits..  But these were only introduced in 1994 and will not benefit homemakers who took time out in the 70s and 80s and are due to retire from 2015 onwards.

I am confused about the average.  Is the calculation I outlined for a person who entered the workplace in their teens correct?  If so, it gives an advantage to those who entered the workplace at a later age.


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## rayn (21 Feb 2012)

Is there not something in the new regs. about 260 fully paid and making up difference with with "modified rate employment contributions"
So its not right to say you need 520
Thanks


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## Ann1 (21 Feb 2012)

Yes Valery...You are correct it does give an advantage to people who entered the workplace at a later stage. Say someone comes to live in Ireland at age 55 and works the minimum 10 years now required for a full Contributory State Pension.. they will be in receipt of a much higher pension that a Homemaker who had a career break to rear a family. The new changes from September will make it even worst for mums/dads who stayed at home to take care of family...in some cases up to €30 a week less in payments.  

State Pension (Contributory) Rates from 6 January 2012 
Yearly Average Contributions Personal Rate Per Week

48 or over €230.30
20 - 47 €225.80
15 - 19 €172.70
10 - 14 €115.20


State Pension (Contributory) Rates from September 2012 
Yearly Average Contributions Personal Rate Per Week

48 or over €230.30
40 - 47 €225.80
30 - 39 €207.00
20 - 29 €196.00
15 - 19 €150.00
10 - 14 €92.00


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## valery (21 Feb 2012)

Thanks Ann1 for your helpful reply.  

I was afraid that was the case.  How or why is a pension system designed in such an unfair manner?   I think that there will be many people, mainly woman, who are going to get an unpleasant surprise when they apply for their pension.


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## delia (21 Feb 2012)

*Reduction of State Pension*

Some of us older folk are in for a substantial reduction in a couple of years re our State Pension -Yes a reduction-despite what the government promised us, it is a reduction,!!

Just look at the changes coming for someone with a yearly average of 20-24 contributions this year and what is coming in around Sept.

This government changed the rules when it got elected.

Remember this when election comes around. They speak with forked tongues.!!


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## Palerider (3 Mar 2012)

Can I just ask if a person has say 30 years paid contributions and retires at say 50 or indeed anytime up to 58 that it will mean that to access a fully paid up non means tested state contributory pension at age 68 that these years count for nothing if no contributions are made for 10 years before that person gains access to their contributory pension ..?, If so that means a person cannot 'retire' at age 58 and live off proceeds of a previous lifes work in anticipation of the State being there from say age 68 ..?


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## Ann1 (3 Mar 2012)

In 2020 the rules for qualifying for a Contributors State pension will change. It will be calculated on the number of PRSI contributions that have been paid rather than the present yearly average formula. The minimum will be 10 years to qualify for a pension and the maximum 30 years will give you a full pension. 
Under the present yearly average formula retiring early and not signing on for credits(which can only be done if you are unemployed and actively seeking work) will actually decrease the yearly average and ultimately the amount of pension you will receive....but you will receive a pension for the 30 years contributions you have made.

http://www.welfare.ie/EN/Schemes/Pension/Pages/statepensionchanges.aspx


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## andrzej (30 Apr 2015)

Hi everyone
Just quick question. Im bit confused on this stage now. I would appreciate if you could help me.out with this.
Im.working part time max 24hrs a week over 3days so im getting the jobsseekers allowance everytime im within 3days and max 24hrs in work.
Im just wondering if this payment is counted into my pension or how long do I need to be on that jobsseekers allowance.also the girl in social welfare told me to applyyfor fis as we have 7month old baby.but I will need to cancel my jobsseekers allowance.
My question to you is.is there any benefit for me to switch from jobsseekers allowance into fis?!
Any help will be greatly appreciated


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## gipimann (30 Apr 2015)

When you work, you pay PRSI contributions.
When you sign for jobseekers, you are given a PRSI contribution credit.

PRSI contributions (paid or credited) will be counted towards your pension (only one contribution per week can be counted, so it will either be the paid contribution or the credit).

It might have been suggested that you switch from jobseeker's allowance to FIS (family income supplement) because you would be entitled to more money on FIS.   If you qualify for FIS, it is paid each week and reviewed once each year.  You would not have to sign on each month if you are on FIS.  You must work a minimum of 19 hours per week to be eligible for FIS - if your work hours go below 19 regularly, you might not qualify.


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## andrzej (30 Apr 2015)

gipimann said:


> When you work, you pay PRSI contributions.
> When you sign for jobseekers, you are given a PRSI contribution credit.
> 
> PRSI contributions (paid or credited) will be counted towards your pension (only one contribution per week can be counted, so it will either be the paid contribution or the credit).
> ...


Thanks for you help gipiman. So I can get highpoteticly more money on FIS but none of the contribution is that correct? 
I wouldn't have to.ask in here about that.If the people in citizen office would be more friendly and answer my question in exactly same way as you did. 
I know it's sounds silly but im just not getting all this at aall. And The help that is provided to us is just useless.
Thank you again


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