# State Pension



## Cobra (19 Mar 2011)

Could someone please tell me if Class S contributions count for the contributory pension. How much would it cost if i had to buy credits if need be., I think i can get the 98% which is 225.80 so what is the next step down in the payment ladder.


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## Husker (19 Mar 2011)

Yes, class S count towards the contributory pension.  Not sure you can "buy" contributions/credits retrospectively - doubt it.


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## Black Sheep (19 Mar 2011)

The next step down is 75%.
You can become a voluntary contributor if you do it within one year of your last payment or credit.
Have you got a full record from SW of all your contributions and credits. You can request this on-line and do an exact calculation from that.
As you do not say how near (or far) pension date is you may have some time to improve your situation


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## Cobra (19 Mar 2011)

Hi Black Sheep,
i have wrote requesting an up to date record from SW. Jan.2014 is my retire date 65 years old. Entered employment 01/02/1965. If i worked to Jan.2014. I would have 1193 credits divide by 48 years worked = 24.85 average credits= €225.80::: But what if i decided to leave the country in Jan.2012.and not return. How would all the calculations work out, with 2 years still left, and i decided to apply for my pension in Ireland from New Zealand in Jan.2014


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## Cobra (19 Mar 2011)

Cobra said:


> Hi Black Sheep,
> i have wrote requesting an up to date record from SW. Jan.2014 is my retire date 65 years old. Entered employment 01/02/1965. If i worked to Jan.2014. I would have 1193 credits divide by 48 years worked = 24.85 average credits= €225.80::: But what if i decided to leave the country in Jan.2012.and not return. How would all the calculations work out, with 2 years still left, and i decided to apply for my pension in Ireland from New Zealand in Jan.2014



I have been trawling the internet and seen that S contributions don't seem to qualify for transition year or will transition year still there in 2014? as i have 3 years with S contributions paid


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## gipimann (19 Mar 2011)

State Pension Transition is being abolished from 2014. State Pension Contributory is paid from age 66, which you may need to factor into your calculations.


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## pudds (19 Mar 2011)

Cobra said:


> I have been trawling the internet and seen that S contributions don't seem to qualify for transition year* or will transition year still there in 2014*? as i have 3 years with S contributions paid



Apparently not, this email from sw recently explains.



> The State Transition Pension will be abolished in 2014 so I would advise  you to keep your insurance record up-to-date in that year if you are  not in insurable employment ie .. sign for PRSI credits.
> 
> As you know the Government recently announced plans for wide-scale  reform of the Irish State Pension system.  As the majority of these  changes will affect those who will reach pension age during or after  2014, it is recommended that you familiarise yourself with these  changes. You can access the 'National Pensions Framework' online via  this Department's Website - www.welfare.ie



thats strange S Contributions qualify for SP but not for TP


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## Cobra (19 Mar 2011)

Does that mean that i cannot get any state pension until i get to 66. I was planning on retirement at 65. Thats news to me, had not accounted for this. So if this is not legislation by Jan 31st 2014 i could still get the Transition year.


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## pudds (19 Mar 2011)

Cobra said:


> Does that mean that i cannot get any state pension until i get to 66. I was planning on retirement at 65. Thats news to me, had not accounted for this. So if this is not legislation by Jan 31st 2014 i could still get the Transition year.




I'm in the same boat as yourself, and trying to get clarification from SW all they said was _State Transition Pension will be abolished in 2014_

They don't say on *what date* that will happen which is very unhelpful for people in our situation. I doubt they even know themselves at this stage so we just have to wait and see. 

edit:
I've just sent an email to Joan Burton asking her to clarifly the situation for us and to give us exact date TP will be abolished. 
If it is effective from the 1st January 2014 then we will have to wait till age 66 to get our SP (if were still around that is)


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## Cobra (20 Mar 2011)

Reading the "The National Pensions Framework" It says changes are in April 6th.2014. But has all this to be passed and made legislation yet or will it be passed at all. I think it is all pie in the sky at the moment. I was talking to citizen advise and he said it will never be brought in. Does anyone know whats going on. I am going to see if i can see some one in SW during the week but i think they will not give me any joy either.


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## pudds (20 Mar 2011)

I think its  kinda like a white paper now, nothing certain or set in stone until they issue a green paper.

The new government could have different plans.


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## Black Sheep (22 Mar 2011)

Just to clarify those on class *S *(self employed) do not qualify for Transition Pension. The only pension from class *S* contributions is State Pension Contributory (old age pension at age 66)

It appears from the above calculation you should have sufficient contributions to get your 98% pension from Ireland (down under). Even if you became a voluntary contributor you could not manage to raise your level to 100%


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## Cobra (22 Mar 2011)

I will have 1193 credits up if i work untill 2014 , thats an average of 24.85 to qualify for 98% less 3 years S Contributions .which would give me 1037 for transition year at 65 . now if i were to loose another two years by going down under . i think i will only qualify for 75% at transition year. Would i be right.


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## Black Sheep (22 Mar 2011)

I've read back through your post again to do a re-check. The position is as follows:-

Jan 2015 is your State Pension date age 66

Your working life from 1965 -2015 is 51 years (as they count both first and last years of work). Therefore your total number of PRSI payments and credits will be didvided by 51 which gives a yearly average of 22.

Transition Pension according to my information (which I cannot guarantee is a difinitive answer) ends in Dec. 2013


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## Black Sheep (23 Mar 2011)

Just a further point, the minimum requirement for transition Pension (if it still existed in Jan 2014) is yearly average of 24. 

Anything below that (24) applies only to State Pension (Old age pension at age 66)


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## diem (23 Mar 2011)

Blacksheep, I know that you are usually right but should the 'working life' in this case not be 1965 to 2014. I know it does not make any material difference in this particular case but in my case it does. The following is from Welfare.ie

To calculate your 'yearly average':

count the number of tax years beginning with the year you first started paying social insurance up to and including the tax year before you reach age 66,
count up all the reckonable contributions paid or credited over these years,
and
divide the number of reckonable contributions and credits (2) by the number of tax years (1).


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## Cobra (24 Mar 2011)

it seems i still can't retire at 65 which makes a big difference to my plans. With 3 years S contributions deducted , i have only 21.17 average contributions paid. The reason being i had 17 years in UK break from contributions. I read as well that its one year before retirement which would be 2014. In 1965 i started work in Ireland for 2 years then 17 years break and started work again in Ireland in 1989. I just wonder if the 2 years would be overlooked. Then i would be sound.
Otherwise i will have to wait untill i am 66. My plans down under not looking good.  Based on the year previous: if i work to 66 i should get 98%. providing changes don't come in 2014 average 24.8. When i get updated contribution from Dublin , i will go to welfare to get sorted one way or another and will post results.


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## Black Sheep (24 Mar 2011)

Diem
I've calculated the yearly average based on a contributory State Pension which is payable at age 66 (2015). As the OP is paying a class S stamp at present he may not be eligible for a Transition Pension (even if it were still around, which I doubt) unless he has some class A in his calculation. As I do not have his full working history I based my calculations on class S.

Cobra 
If you decided to retire early you could de-register and become a voluntary contributor for the final year or two. This would cost you E253 per year
With 17 years in the UK have you been checking your entitlements there


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## Cobra (24 Mar 2011)

Black Sheep said:


> Diem
> I've calculated the yearly average based on a contributory State Pension which is payable at age 66 (2015). As the OP is paying a class S stamp at present he may not be eligible for a Transition Pension (even if it were still around, which I doubt) unless he has some class A in his calculation. As I do not have his full working history I based my calculations on class S.
> 
> Cobra
> ...



Yes i have got a forecast for pension in uk. 1037 class A for my transition year which gives me 21.6 average and 1245 credits at 66 including my S Contributions which is average24.9 for 98% but this is pointless if things change with government in 2014.


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## pudds (15 Apr 2011)

pudds said:


> I'm in the same boat as yourself, and trying to get clarification from SW all they said was _State Transition Pension will be abolished in 2014_
> 
> They don't say on *what date* that will happen which is very unhelpful for people in our situation. I doubt they even know themselves at this stage so we just have to wait and see.
> 
> ...



She referred my enquiry to the Pensions office in sligo, who responded by saying this department has no information on that but here is the current situation bla bla bla....gawd why do we bother


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