# Voluntary Pension Contributions



## fitzie79 (9 Jul 2014)

My wife took a career break of 1 year commencing last September and finishing this September. She has therefore made no compulsary PRSI contributions for this period of time. My understanding is that this may impact the State Pension as it is based on the number of complete year contributions but that a maximum of 30 years of complete year contributions are required.

She is currently 34 so if she works until retirement age she will have another 34 years on top of the 10 or so already completed. Is there any point therefore in making voluntary contributions for the previous year?


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## noproblem (10 Jul 2014)

I don't think she can just go and make voluntary contributions. There was something like this for self employed people who stopped trading, but I'm not certain it's still available. I do know that the contribution used to be something just under €300, now it has gone up to €500, but not a word of complaint about the increase from those paying. It's a fantastic facility if you're allowed to pay it and coming up near retirement.


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## fitzie79 (10 Jul 2014)

I came across this on the Social Welfare site which details voluntary contributions. Looking at this I think she would need to contribute 6.6% of her salary from the preceding year but I'm unclear if there is any point in doing so.


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## wbbs (10 Jul 2014)

Impossible to tell whether it is a good idea or not if possible as by the time she gets to pension age the rules regarding contribution numbers could all have changed again.


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## Ann1 (10 Jul 2014)

Do you have children under the age of 12 and was the career break used to take care of the children...if yes then that year will not be taken into account when calculating a future state pension...


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## TRS30 (11 Jul 2014)

Ann1 said:


> Do you have children under the age of 12 and was the career break used to take care of the children...if yes then that year will not be taken into account when calculating a future state pension...



Do you know if the same applies to maternity leave? My wife will be taking 4 months unpaid leave.


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## Ann1 (11 Jul 2014)

If you wife is granted 26 weeks paid maternity benefit she will automatically receive PRSI credits for the 26 weeks. If she wishes to take additional unpaid maternity leave immediately after her paid leave and receive PRSI credits for that period she must apply to the Maternity Benefit Section.  PRSI credits will be added to her record for the period of the unpaid leave... up to a maximum of 16 weeks. She will need to be in insurable employment and ask her employer to complete the application form for Maternity Leave Credits. You will find the application form on the link below.

http://www.welfare.ie/en/Pages/Can-I-qualify-for-maternity-leave-credits.aspx


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## fitzie79 (11 Jul 2014)

Ann1 said:


> Do you have children under the age of 12 and was the career break used to take care of the children...if yes then that year will not be taken into account when calculating a future state pension...



Yes - we have 2 under 4 so the career break was to care for them whilst they were young. When you say that year will not be taken into account for a state pension - does that mean it will not have a negative impact in calculating average payments?


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## huskerdu (11 Jul 2014)

fitzie79 said:


> Yes - we have 2 under 4 so the career break was to care for them whilst they were young. When you say that year will not be taken into account for a state pension - does that mean it will not have a negative impact in calculating average payments?


 
Its not as simple as that. 
Its a complete minefield. 
Here is some relevant information about getting credited contributions and the homecarers scheme.   THe homecarers scheme, where a year spent as a home carer is disregarded for pension contribution is only for complete tax years, so she might not quality. 


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


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## Ann1 (11 Jul 2014)

fitzie79 said:


> Yes - we have 2 under 4 so the career break was to care for them whilst they were young. When you say that year will not be taken into account for a state pension - does that mean it will not have a negative impact in calculating average payments?



Yes the Homemakers Scheme was brought about to ensure that parents/carers would have a fair chance to qualify for a State Contributory Pension. They appear to now have two methods in place..one where a full tax year is disregarded and another where credits are assigned for part of a tax year. Best to give Buncrana a ring and they will be able to tell you how to apply for the credits.

http://www.welfare.ie/en/Pages/Homemakers.aspx

Homemaker's Scheme Section
Department of Social Protection
McCarter's Road
Buncrana
Donegal
Ireland 
Tel01) 471 5898 
Locall:1890 690 690 
Homepage: http://www.welfare.ie


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## TRS30 (14 Jul 2014)

Ann1 said:


> If you wife is granted 26 weeks paid maternity benefit she will automatically receive PRSI credits for the 26 weeks. If she wishes to take additional unpaid maternity leave immediately after her paid leave and receive PRSI credits for that period she must apply to the Maternity Benefit Section.  PRSI credits will be added to her record for the period of the unpaid leave... up to a maximum of 16 weeks. She will need to be in insurable employment and ask her employer to complete the application form for Maternity Leave Credits. You will find the application form on the link below.
> 
> http://www.welfare.ie/en/Pages/Can-I-qualify-for-maternity-leave-credits.aspx



Thanks Ann1.

We have completed the MB10 form and sent to SW. They have replied to say they are assessing our claim. 

I see the additional credit form so will get her to say to her employer that they need to complete this when she returns after the additional unpaid period. 

Thanks very much, would never even have thought of this!!


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