# Receiving British and Irish contributory pensions



## arboreal (28 Jun 2006)

I worked in Britain in the 1970s as an employee and paid PAYE and National Insurance contributions in the normal way. I have now been informed by the British Inland Revenue that if I pay a further 7 years National Insurance contributions I will become entitled to receive the minimum 25% of the standard rate basic State Pension (£21.06 per week at current rates) on reaching retirement age in 10 years time. The 7 years contributions would cost me about £1,600.

Since returning from Britain I have been employed as a PAYE worker and expect to continue until I'm 65. Therefore I would expect to receive a full contributory pension on retirement. Is there any restriction on me receiving both the British and Irish pensions in these circumstances.


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## Flexible (28 Jun 2006)

I don't really know but my mother receives both pensions and she only worked a couple of years along with my father in the UK.


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## pat127 (28 Jun 2006)

After 10 yrs approx working in the UK in the '60s I'm in receipt of a small UK pension and also get the full Contrib pension here. Contributory pensions are essentially assurance  policies. Pay your contributions and you are entitled to draw the benefits. 

Pat


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## willmy41 (18 Jul 2006)

I had 9 years UK contributions in the 60's. I recently reached pension age and was short 2 years for the minimum UK pension. They gave me a choice of buying an extra 9 years (cost over €4000) which gave me a pension of €200 every four weeks. My wife will also receive a small pension, based on my NI contributions, once they allocate her a UK National Insurance number. I have to live for another year to get my money back!
I am on Invalidity Pension here and in the process of switching to Retirement Pension. And lucky me I also have a small occupational pension. Hope this helps.


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## Jezabel (29 Jul 2006)

And what about getting irish contribution as a EU person working in Ireland ? 
I am an italian person having worked in Ireland for 10 years.  If I go back now to my country, will I be entitled to any pension from Ireland government when I retire ? If so , how much would the pension be, or it currently is ?    how many years worked are required to be entitle to a pension in Ireland?
Anyone knows ? Thanks.


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## arboreal (22 Aug 2006)

Sorry Jezabel can't help on your query!!
Have received further info from the nice people in Newcastle who deal with overseas pensions (see top post). They now say if I pay the £1,600 in NI arrears plus pay NI contributions until I'm 65 (cost about £I,000) I will be entitled to a pension in present day terms of about £50 per week. Looks like a total no brainer - get back my money in a year once I turn 65. The bit I don't understand is that I seem to be allowed to pay PRSI in Ireland and NI contributions in the UK at the same time therefore generating entitlement to two state pensions. Any thoughts anyone?


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## Alba Longa (3 Sep 2006)

arboreal said:


> Sorry Jezabel can't help on your query!!
> Have received further info from the nice people in Newcastle who deal with overseas pensions (see top post). They now say if I pay the £1,600 in NI arrears plus pay NI contributions until I'm 65 (cost about £I,000) I will be entitled to a pension in present day terms of about £50 per week. Looks like a total no brainer - get back my money in a year once I turn 65. The bit I don't understand is that I seem to be allowed to pay PRSI in Ireland and NI contributions in the UK at the same time therefore generating entitlement to two state pensions. Any thoughts anyone?


ARBOREAL How many years NI contributions would the £1,600 cover?
The British Government's white paper on pension reform due to go before the MPs in October will, if passed, mean that both men and women will need only 30 years of NI contributions to get the full state pension.
It will be enacted in 2010, so it will only affect people retiring after 2010.


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## arboreal (4 Sep 2006)

£1,600 is for the tax years 96/97 to 05/06. Class 2 rate contributions of £2.10 per week applies to some of the years because I have been employed abroad, i.e. Ireland. I am aware of the upcoming pension reforms but even with making the back contributions plus contributions to retirement age I will still only have 27 years contributions.


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## dontaskme (4 Sep 2006)

Jezabel said:


> And what about getting irish contribution as a EU person working in Ireland ?
> I am an italian person having worked in Ireland for 10 years. If I go back now to my country, will I be entitled to any pension from Ireland government when I retire ? If so , how much would the pension be, or it currently is ? how many years worked are required to be entitle to a pension in Ireland?
> Anyone knows ? Thanks.


 
http://ec.europa.eu/employment_social/soc-prot/schemes/guide_en.htm
see above site:

In every country where a person was insured, his _insurance-record is preserved_ until he reaches pensionable age; in other words, contributions which have been paid are neither transferred to another country nor paid out to the person if the person concerned is no longer insured in that country; 
_Every country where a person was insured for at least one year will have to pay an old-age pension_ when the person concerned reaches pensionable age; for example, if you have worked in 3 countries, you will get 3 separate old-age pensions once you reach pensionable age. 
This pension will be _calculated according to your insurance record_ in that country; if you were insured there for a long period of time, you will get a relatively "high" pension, if you were insured for a rather short period of time, your pension will be relatively "low". 
_- YOU HAVE BEEN INSURED IN MORE THAN ONE COUNTRY - _You will get a pension from every state where you were insured for at least one year. These pensions will correspond to the insurance periods completed in each of the states concerned. For example: You were insured - for 10 years in Member State A, - for 25 years in Member State B and - for five years in Member State C. This means that you were insured for 40 years in total before you reached pensionable age. Member State A will calculate the amount of pension you would be entitled to after 40 years of insurance in that state. It will then pay you the amount corresponding to your actual periods of insurance, i.e. 10/40 (or 1/4) of this amount. Similarly, Member State B will pay you 25/40 (or 5/8) of the amount you would be entitled to in that state after 40 years of insurance. Finally, Member State C will pay you 5/40 (or 1/8) of the amount you would have been entitled to in state C after 40 years of insurance.


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## arboreal (6 Sep 2006)

Dontaskme - thanks for the reference to the EU GUIDE on working in different states. Unfortunately it makes no reference to paying NI contributions in arrears to the UK _in absentia _while making PRSI contributions in Ireland and thereby qualifying for contributory old age pensions in both states.


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## Marie (6 Sep 2006)

Arboreal by definition contributory pension is a portion of your income in the country in which you are resident.  Why would anyone pay National Insurance or any other "stoppage" to a fund in a country in which they were not living?  

Calculation for your overall entitlement is on the total number of years of employment and begins with your first National Insurance/equivalent contributions (regardless in which EU state they were made).  As you say people who have been in and out of work for various reasons are offered the opportunity to make up the contribution if they wish.

I've never heard of  _simultaneous _entitlement from two countries.  The whole point of it is that this benefit is linked to employment and pension system in _that_ state.


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## arboreal (7 Sep 2006)

Marie - my position is I worked in the UK in the 1970s and paid NI contributions. Since returning to Ireland I have been a PAYE worker and would expect to receive a full contributory Irish pension. I was curious whether my stint in the UK entitled me to anything so I wrote to the overseas pensions section in Newcastle and outlined the above position. They replied that if I made further contributions I would become entitled to a partial UK pension. What I am trying to establish is if I am in receipt of this partial UK pension would my Irish pension be reduced.


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