# Difference between Contributory & Non Contributory Pension



## Kingdom

Does anyone know what the current difference is between Contributory & Non Contributory Pension?

Thanks in advance


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## Homer

Under a contributory scheme, the members contribute part of the cost of providing benefits.  Under a non contributory scheme, the entire cost is met by the employer.

Regards
Homer


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## Kingdom

Sorry, I forgot to specify that I was referring to the State Pension scheme and I was referring to the actual amount of money paid each week.

Tks


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## Homer

*From January 2008, the maximum rate of State Pension (Non-Contributory) is:*

*State Pension (Non-Contributory) **Rate per week (max)*
Personal rate, aged 66 and under 80 .........€212
Personal Rate, Aged 80 ...........................€222
Increase for a Qualified Adult ...................€140.10
Increase for a Qualified Child ....................€24

*State Pension (Contributory) payment from January 2008:*

*State Pension(Contributory)Weekly rate (maximum)*
Personal rate, aged 66 - 80 ..............€223.30
Personal rate, aged 80 and over ........€233.30
Qualified adult aged under 66 ............€148.80
Qualified adult aged 66 and over ........€200
Dependent child (full-rate) ................€24
Dependent child (half-rate) ...............€12

The maximum rates are payable to people who have an average of 48 or more contributions. Reduced rates are payable to people who have between 10 and 47 contributions. 

Both the contributory and non-contributory pension will increase by €7 per week from January 2009.

Regards
Homer


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## Kingdom

Is it correct to say that 
(a) You can only entitled to one type of Pension 
(b) Contributory is not Means Tested while the Non Cont is?

Tks


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## Bronte

The biggest difference is that the non contributory is means tested.  You can be a millionaire and still get the contributory if you have enough PRSI payments/stamps.  That's why it's called contributory, you've contributed to it.


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## jpd

Bronte said:


> ... That's why it's called contributory, you've contributed to it.



Strictly speaking, you have contributed to the right to a the pension and not to it directly. 

All State pensions are paid from current taxation receipts and are not funded. The National Pension Fund was setup to have a pot of money to help pay out pensions in the future - (from 2020 ? onwards). These are the funds that the Gov't is contemplating investing in our banks - hope they get that decision right.


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## ClubMan

Kingdom said:


> Does anyone know what the current difference is between Contributory & Non Contributory Pension?


There is lots of info about these on www.welfare.ie and www.citizensinformation.ie.


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## ajapale

Moved from  Pensions to  Welfare and State Benefits

and question relating to self employed entitlements split off.


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