# Entitlement to state pension



## Blackrock1 (14 Aug 2018)

Just wanted to try get some clarity on this, itll become a consideration when we try and decrease how much my wife works over the coming decade.

She is 38 now and has been in full employment (with the same employer) since she was 23. I presume what she earns is irrelevant but for the majority of that time she has been paying income tax at the top rate. She will obviously have the 520 contributions required for the state pension but im struggling to understand the next part, i believe its an average of 48 contributions per year, is that correct? If thats so, assuming she started working at 23 and pensionable age (at the moment) is 66, she would need 2,064 contributions to meet the criteria for a full pension is that correct?


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## Protocol (14 Aug 2018)

Two points to note:

If she becomes a homemakers, taking care of dependents, then she qualifies for the Homemakers scheme, and up to 20 years spent caring for kids will be disregarded in pension calculations.

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

Second, please note the average approach will be replaced by the Total Contributions approach TCA in 2020-2021.


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## Blackrock1 (14 Aug 2018)

thanks, will the TCA apply going forward or retrospectively?


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## Protocol (14 Aug 2018)

https://www.welfare.ie/en/downloads/TotalContributionsApproach_PensionerScenarios.pdf

Sorry, I haven't read these.

https://www.welfare.ie/en/downloads/Pensions_consultation_2018.pdf


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## T McGibney (14 Aug 2018)

Blackrock1 said:


> she would need 2,064 contributions to meet the criteria for a full pension is that correct?



At age 38, she won't become eligible for OAP for circa 25 years. The current eligibility criteria will be long gone by that stage.


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## orka (14 Aug 2018)

Blackrock1 said:


> thanks, will the TCA apply going forward or retrospectively?


State pension doesn't accrue as such so rules apply as at retirement date - so effectively retrospective.  Under the proposed TCA, I believe a person needs 40 years of contributions to get a full pension - so your wife would need 25 more years of contributions.

While I agree with TMcGibney that the criteria will likely be long gone by the time your wife reaches retirement age, I think it's safe to say that any new criteria will be less and less generous so you could look at the TCA as a best case outcome.


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## Tintagel (8 Nov 2018)

My wife left work in 1976 to care for our children. In 1994 our youngest child turned 12 years of age.  Can my wife claim under the Homemakers scheme for the years 1976 to 1994?  She returned to work in 1999 and worked until 2006.

If she can, how exactly does this benefit her?  Thanks


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## Conan (8 Nov 2018)

Tintagel 
Under the current rules the answer in NO. Currently the credits under the Homemaker Scheme only applies from 1994.
However the Government are currently reviewing the situation in respect of those out of the workforce minding children prior to 1994. I understand that that some changes are coming and it appears as if credit will be given for such years prior to 1994.
I think she will have to await clarity on the issue.


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## Tintagel (9 Nov 2018)

Thank you Conan.

 It would seem unfair that some people would be able to benefit from the Homemakers scheme but other people would not be able to benefit from it.

In fact those people turning 66 around about now would have started work back in the early 1970's, in my wife's case earlier. They would have started their family in their early twenties possibly the mid to late 1970's.

Why did the current Homemakers scheme not apply to those people from say the 1975's to 1995's? Those people who would be approaching 66 years of age now. It's as if the Government don't want these people to get a full pension.

The current Homemakers scheme applies from 1994. Many people who have young children in 1994 would have been born around 1970. They would be around 50 years of age now. These will not qualify for a pension for a further 16 years or more.

It would have made more sense for the Government to apply the Homemakers scheme to those people who are approaching retirement NOW rather than those who won't retire for another 16 or so years.


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## jpd (9 Nov 2018)

Tintagel said:


> It would have made more sense for the Government to apply the Homemakers scheme to those people who are approaching retirement NOW rather than those who won't retire for another 16 or so years.



It might seem that it makes more sense but it would cost a lot more and so, younger citizens, or those yet to be born, who will have to pay for these extra pensions in the years to come may not agree


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## Magpie (9 Nov 2018)

It's especially unfair that the women excluded would have been the women forced into the home through marriage bars in work and lack of childcare, and women who could later choose not to work are included.


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## Grizzly (9 Nov 2018)

Magpie said:


> It's especially unfair that the women excluded would have been the women forced into the home through marriage bars in work and lack of childcare, and women who could later choose not to work are included.


 Excellent point. I couldn't agree more.


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## Grizzly (9 Nov 2018)

Tintagel said:


> It would have made more sense for the Government to apply the Homemakers scheme to those people who are approaching retirement NOW rather than those who won't retire for another 16 or so years.



Maybe they are kicking the can down the road. Who knows what sort of criteria will apply in 16 years time.

The Government should be dealing with those "mothers" who are approaching 66 now, who as Magpie says above may have been forced to quit their jobs due to the marriage bar or similar. 

These people are being affected now.



Conan said:


> Tintagel
> Under the current rules the answer in NO. Currently the credits under the Homemaker Scheme only applies from 1994.
> However the Government are currently reviewing the situation in respect of those out of the workforce minding children prior to 1994. I understand that that some changes are coming and it appears as if credit will be given for such years prior to 1994.
> I think she will have to await clarity on the issue.



Does anyone have any updates on what is happening here? It has all gone very quiet.  Are there any people/groups lobbying the Government about this?


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## Conan (9 Nov 2018)

I think that the Dept will be writing to those affected in the coming weeks. A commitment has been made by the Govt to tackle the issue and I think more clarity is on the way.


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## asdfg (10 Nov 2018)

You also need 520 contributions to qualify for the state contributary pension. Credits do not count towards this. If someone goes on disability benefit with say 400 contributions and gets say 20 years of credits (1040 credits) they do not qualify for the state pension


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