# Transition Pension self-employed was employed



## Jano (31 Jul 2011)

My parents have to close their business asap due to ill health and my Father will have to claim jobseeker's allowance (they have no savings/investments etc) until he can claim a State Pension. He has over 400 class A contributions from employment and approx 728 class S from self-employment over the last 14 years. He will be 65 next summer after the changes to pensions apply and would therefore need 520 contributions from employment so wouldn't qualify ordinarily. If he pays Voluntary PRSI Contributions from now until he is 65 next summer at €253 per year - will he then be entitled to a mixed pension and will it be pro rata? I understand a mixed pension would allow his employed and self-employed and voluntary contributions all be counted but only if he has these modified contributions. Is there a min no of voluntary contributions? I can't find any reference to this on welfare.ie? 
Many thanks for any advice during this difficult time.


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## busymam (31 Jul 2011)

Jano

Sorry to hear about your dad's ill health.

If he has ill and unable to work, he probably won't qualify for Jobseeker's Allowance but he can apply for Disability Allowance instead. http://www.welfare.ie/EN/Publications/SW29/Documents/sw29.pdf

Regarding his entitlement to State Pension (Contributory) at the age of 66 - from what I know, Class S contributions (self-employment) count the same as Class A ones for this payment. Have a look here http://www.welfare.ie/EN/Publications/sw122/Documents/SW122.pdf

There are contact numbers on the last document and I suggest you give them a call.

Hope this helps.


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## Jano (2 Aug 2011)

It's my Mum who is ill and needs months of treatment - the business revolves around her and she will be unable to run it for months and the business cannot afford to pay staff. My father can sign on once they close in the next 2 weeks - the issue that we are trying to resolve is the possibility of a transition pension from next summer as it would be a higher payment for them until he gets his contributory pension the year after.


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## busymam (3 Aug 2011)

Apologies for misinterpeting your original post.

Perhaps your dad could apply for Carer's Allowance and your mum could apply for Disability Allowance. If this isn't feasible he could apply for Jobseeker's Allowance and Voluntary Contributions. http://www.welfare.ie/EN/Publications/SW8/Documents/sw8.pdf

However, it would appear that in your dad's case, he would only get Class S contributions, as his last PRSI contribution was at Class S. http://www.welfare.ie/EN/Publications/SW8/Pages/3WhatrateofcontributionshouldIpay.aspx

The special rate of voluntary contributions do not provide cover for State Pension (Transition).
http://www.welfare.ie/EN/Publications/SW8/Pages/5Whatbenefitsdothevoluntarycontributionscover.aspx

My suggestions are:

1. Your dad should not apply for the voluntary PRSI contributions as they are worthless for State Pension (Transition).

2. Your dad should apply for Carer's Allowance and your mum should apply for Disability Allowance or your dad should apply for Jobseeker's Allowance.

3. As there is a considerable waiting time for these payments, your dad should apply for Supplementary Welfare Allowance (this is a payment from the Community Welfare Officer, usually at their local health centre).

4. Your parents should also apply for a medical card.

Hope this helps and your mum gets better soon.


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## Jano (4 Aug 2011)

Thanks a million for such a comprehensive reply. That helps a lot! Do you think Mum would get Disability Allowance given that her radiotherapy will all be over within the next 8-10 weeks? When are you considered to be recovered from cancer?! She has other health issues but none that on their own would qualify her for DA but she has been told that the combination of all the issues will leave her tired for months. Thanks again.


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## busymam (5 Aug 2011)

To get Disabilty Allowance, a person has to have a medical condition that is expected to last at least a year. This is very vague. In my experience, a person can have an illness and the effects of that illness (not necessarily the illness itself) can last for more than a year. I'm sorry if this sounds convuluted.

Have a look at this link and search for Disability Allowance - http://www.welfare.ie/EN/OperationalGuidelines/Pages/medreview.aspx

The relevant text is:
*'Disability Allowance: *

The Medical Assessor will give an opinion on whether the person, by reason of a specified disability, may or may not be considered substantially handicapped in undertaking work of a kind which, if they were not suffering from that disability would be suited to their age, experience and qualifications. 

This opinion is referred to the Deciding Officer for a decision on the claim (means criteria must also be satisfied for Disability Allowance).'

There's a huge waiting list for Disabilty Allowance (DA) and Carer's Allowance (CA). There is nothing preventing your dad from applying for Jobseeker's Allowance (which if granted, would include a payment for your mum') and your mum applying for DA.

If your dad applied for Carer's Allowance, a Deciding Officer may consider that your dad is not available for full-time work as he has submitted a CA claim (it would be seen on the computer system).

In my view there are two options open to your parents.

1. Your dad applies for Jobseeker's Allowance for both of them. As this is a lengthy process he should apply for Supplementary Welfare Allowance while the JA claim is decided.

2. Your dad applies for CA and your mum applies for DA. Again he should apply for Supplementary Welfare Allowance. This is paid while claims are pending.

The only reason I suggested the CA and DA option is because of the extra benefits associated with CA, such as, Free Travel, Household Benefits Package and the Respite care Grant.

No matter what option they choose, they should apply for Supplementary Welfare Allowance. This is a weekly payment from the Community Welfare Officer, usually at their local health centre.

http://www.welfare.ie/EN/OperationalGuidelines/Pages/swa.aspx

Best wishes to your parents (especially your mum with her future treatment).


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## Black Sheep (5 Aug 2011)

I agree with busyman's proposal, and don't see the point of paying voluntary contributions as it is unlikely that it would enhance your State Pension at age 66. 
At age 66 you could apply for State Contributory Pension of which you should be entitled to 98% rate (E225.80 for you +E153.50).
Your wife would be your qualified adult until she reaches age 66 and apply for Non-Contributory Pension in her own right.


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