# Social welfare credits



## Mal1 (14 Feb 2007)

Hi,

Just wondering if anyone can help me. I was on unemployment benefit for 1 year, it finished last month. I'd like to keep up my prsi payments so I'll be able to get a pension and dental benefit etc, but today I got a letter saying I have to go back to the social welfare office with a form to fill in and proof of looking for a job. 
Has anyone else had to do this? I was under the impression I could just buy stamps to keep my credits, and not have to be still looking for a job. WIll I not get my credits if they think I'm not looking for a job?
Will I now have an interview with social welfare? Sorry, really just don't understand how this works!


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## Welfarite (14 Feb 2007)

The credits you are talking about are only awarded if you continue to "sign on" and to do this, you must continue to look for work...the same as you did before entitlement ran out. However, in my experience, people signing for credits only are not reveiwed as strictly as those who are getting payments so don't worry too much. Just go down and do what they ask. It's important not to break your PRSI/Credit record to keep future entitlements. Don't forget, you are still entitled to Illness Benefit based on the PRSI you've paid, as well as Dental, Optical, etc.. Looking after your State Pension record is just as important.


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## ClubMan (14 Feb 2007)

Are voluntary contributions also relevant here and, if not, then in what circumstances are they relevant?


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## Welfarite (14 Feb 2007)

Interesting angle, Clubman! Never heard paying vol. cons. when not working. Drawback is that they only cover pension entitlements and not short-term benefits like Dental, Illness, etc. but I don't see why they couldn't be paid by someone out of work. I think the minimum is 250 per year? Payable to Revenue.


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## ClubMan (14 Feb 2007)

Yes - they only cover long term benefits. I'm not clear what benefits credits available in other circumstances cover, how they might differ from _VCs_ and if somebody on such credits might also want to consider _VCs_!?


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## Welfarite (14 Feb 2007)

Credits generally cover you for the same benefits that the class of PRSI you were previously paying covers you. If you were paying Class B (cover for pensions adn death benefits only) adn then you sign on for credits, these credits will only cover yopu for pensions and death benefits only. Can't see any situ where a person getting credits would need to pay VCs


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## ClubMan (14 Feb 2007)

I see - thanks for that.


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## justsally (14 Feb 2007)

Unemployment Benefit is now called Job Seekers Benefit. So if someone is not looking for work he/she cannot claim Job Seekers Benefit. When the benefit runs out it's necessary to work for 13 weeks to re-qualify for Job Seekers benefit.   Re the benefit of credits - If someone has no paid contributions or credits for two full years then the time needed to re-qualify for Job Seekers is 26 weeks. Credits plus paid contributions are added together to ascertain the total number of contributions which are then divided by the number of years since first entering the social welfare system in order to ascertain the yearly average - this is one of the measures used to ascertain pension entitlement. The first conditon being, one must have 260 paid contributions.

Welfarite, you're the expert here, so I'm open to correction.


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## busymam (14 Feb 2007)

Credits are explained here http://www.welfare.ie/publications/sw12.html


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## ClubMan (14 Feb 2007)

justsally said:


> Unemployment Benefit is now called Job Seekers Benefit. So if someone is not looking for work he/she cannot claim Job Seekers Benefit.


That was always the case even when it was called _UB/UA._


> When the benefit runs out it's necessary to work for 13 weeks to re-qualify for Job Seekers benefit.


Or they could apply for means tested _UA/JA_?


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## justsally (14 Feb 2007)

The OP called it Unemployment Benefit. 

Yes the OP could apply for assistance. But the query was in relation to Unemployment Benefit!!! and credits and whether or not it is necessary to be looking for a job when signing on.




> I was under the impression I could just buy stamps to keep my credits, and not have to be still looking for a job. WIll I not get my credits if they think I'm not looking for a job


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## ClubMan (14 Feb 2007)

justsally said:


> The OP called it Unemployment Benefit.


I know. I never said that they didn't. My point was that genuinely seeking and being available for work was always a qualifying condition even when the terms _UB/UA _were used instead of _JB/JA_.


> Yes the OP could apply for assistance. But the query was in relation to Unemployment Benefit!!! and credits


Yes - but experience has taught me to err on the site of caution because a lot of people say benefit or assistance without really understanding the difference between the two and the fact that losing benefit doesn't necessarily preclude applying for assistance.


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## Mal1 (14 Feb 2007)

Hi,
Thanks to everyone who replied. I was looking for a job, but had no luck, so have decided to stop looking, and move house back to the country. We'll be moving in the summer, so theres no point in me looking for a job now, as I will only be in it for a few months. I do however want to keep up my credits, as when we move I will look for a job, and don't want to lose my dental benefit, pension etc. Hope that makes sense.


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## justsally (14 Feb 2007)

Good luck with your move back to the country.

Hope everything works out really well for you and yours.



Cheers

Justsally


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## ClubMan (14 Feb 2007)

Mal1 said:


> I was looking for a job, but had no luck, so have decided to stop looking, and move house back to the country. We'll be moving in the summer, so theres no point in me looking for a job now, as I will only be in it for a few months. I do however want to keep up my credits, as when we move I will look for a job, and don't want to lose my dental benefit, pension etc. Hope that makes sense.


So the credits payable when claiming _Jobseekers/Unemployment Benefit _(or _Allowance_?) are irrelevant since you no longer qualify to claim them and _Voluntary Contributions _don't cover short term benefits such as _Treatment Benefit_ but do cover some long term benefits.


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## Welfarite (15 Feb 2007)

Mal1, you'd want to think long and hard about opting out of the workforce, even for a few months as it may affect you over the next few years if you need to claim benefits. For instance, if you have no contributions or credits from now unitl "the summer" adn this period is over three months (13 weeks), it will mean that the maximum record for 2006 tax year will be less than 39 weeks. This is the year that any claim to benefit in 2008 will be based on and you need at least 39 weeks cons/credits to qualify for most payments, including Illness, Jobseeker's, Dental, etc.

A short break of three months won't have as dramatic an effect on pension entitlements though, as your record is averaged out over your working lide to pension age.


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## bankrupt (12 Apr 2008)

Hi All,

If I am working abroad for a few years in a non-EU country is it sensible to make voluntary contributions?  If so, how should I calculate how much to pay?


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## Black Sheep (12 Apr 2008)

Don't know what age you are but if you are 55 it is not necessary to look for work while you sign for credits.

As welfarite has already stressed very strongly it is a very serious move to opt completely out of the system even for a couple of months. 

If you have been on Jobseekers Benefit for the past 15 months I assume you have been job searching. Nothing has changed in that area except you are loosing your Benefit (payment) so I take that Jobseekers Allowance is not an option for you as you have not mentioned it. 

Keeping credits going if possible is a much better option than Voluntary Contributions


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## Black Sheep (12 Apr 2008)

Bankrupt
Ireland has bi-lateral agreements with many non-EU countries so it may not be necessary to pay Voluntary contributions. It may also not be possible as you need to start paying within a year of your last Irish payment. As you are working abroad perhaps the gap is too much.
When  leaving that country I would be getting a record of PRSI paid abroad for future use.


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## Welfarite (14 Apr 2008)

Bankrupt, what country are you/will you be working in? See here for voluntary cons. info.


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## bankrupt (14 Apr 2008)

Thanks for your help Black Sheep and Welfarite, I am eligible to pay voluntary contriubutions it seems.  Out of interest, how would I work out what the  approximate value of these contributions would be in the future?  I would have to pay %6.6 of my previous salary as a VC, what sort of shortfall could I expect to have in my pension if I don't make VCs for a couple of years?


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## Black Sheep (15 Apr 2008)

Your pension will be calculated on the total number of PRSI payments and credits made during your working life divided by total number of years since first entering employment, to give a yearly average.

A yearly average of 48 is required to give a full pension at age 65
"   "          "        "  24 will bring a 98% pension.

Changes in that situation are expected in the future


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