# Contributory State Pension



## Perplexed (14 Jul 2012)

_*Changes to State Pension - Homemakers*

 From 5 April 1994, any contribution year spent as a homemaker may be  disregarded in the calculation of the yearly average up to a maximum of  20 years. The fact that you do not have any contributions in those years  will not affect your entitlement to a pension. It is proposed under the  National Pensions Framework, launched in March 2010, to implement a new  credit-based system to replace the current system of disregards.  The  new system will grant credits for time spent homemaking instead of  disregards, but the required legislative change has not yet been  introduced.  _ 



Can I take this as fact?  I worked for 6yrs, was a homemaker for 15yrs and have subsequently worked continuously for the past 18yrs.  If I were to take a Redundancy package now, will I have the 30yrs contributions required to receive a full Contributary Pension on reaching 65?  From reading the above I think I should but I just want to be sure I'm not missing anything! I'd really appreciate a second opinion on this especially regarding the bit at the end about the "legislative change has not yet been introduced"!


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## wbbs (14 Jul 2012)

So are you saying you went back to work in 1994?   That piece you quoted makes it look like it only applies from 1994 on so your 15 yrs at home were prior to that, is that correct?

Anyway I would not trust any legislation now in place to be the same by the time I get to pension age, I really feel there will be less chance of a contributory pension if a person has a private pension.


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## Perplexed (14 Jul 2012)

Thanks wbbs.  Yes, you're spot on.  I'll have to have a look again.  I was sure I was missing something and you've put your finger on it!


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## Black Sheep (15 Jul 2012)

These are planned changes and require legislation to bring them into effect, so in the meantime the old rules still apply. 

Please note that Transition Pension is being abolished in 2013. 

The Pension age from 2014 onwards will be *66*


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## Perplexed (15 Jul 2012)

For once in my life I'll be hoping to get older more quickly so's I'll beat the new legislation  lol

Thanks a mill.  There's so much info it's hard to sift through it an find the appopriate sections.


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## Ann1 (15 Jul 2012)

I think the legislation on the 30 years total contributions is set for 2020....by 2021 the age for qualifying will be 67. 
http://www.welfare.ie/EN/Schemes/Pension/Pages/statepensionchanges.aspx


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## Perplexed (15 Jul 2012)

I think I'll have to contact the SW Office. I seem to have done everything wrong!  I returned to work on the year that child rearing would have counted.
There's a way of making voluntary contributions which though expensive could be worthwhile for me.
Yes, I do have a private pension but it's very small and definitely not enough to live on. 
I had hoped to take a Redundancy Package, go back to education and follow a different career plan.  Spending another 8yrs in a job I'm not mad about untill I'm too old to do anything else is not appealing.  I just want to be sure before I take the plunge that I'll be able to survive in my old age!
Thanks for all you comments.


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## wbbs (15 Jul 2012)

Not sure how the going back to education bit works but when/if you take your redundancy you can apply for jobseekers benefit assuming you will be looking for work, you will get this and it will count towards your contributions for pension.  When this runs out you will be means tested for jobseekers allowance, assuming you will not qualify, then you can sign for credits which means you get no payments but preserves your pension entitlements.  However all this may be irrelevant if you go back to work or to study but if neither of those things happens then you can at least continue to accumulate contributions for the pension.


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## Perplexed (15 Jul 2012)

Thanks.  I've been coming to the same conclusion.
I had actually planned on going abroad to work for a while.  Strange how it'll probably make more sense to stay until I've come to the end of my Job Seekers entitlement or Back to Education as it'll be less costly for me but more costly for the Social Welfare system. 
I've never drawn any sort of Unemployment benefit but this system seems to encourage one to do so!


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