Budget win for pensioners as Heather Humphreys seeks €15 a week pension increase, while pushing back on Jobseeker’s rise

Deiseblue said:
Too late Clint , in this case I am feeling lucky!
In addition to my defined benefit pension from my employer , a job I retired from at age 52 I now receive the full contributory pension & confidently expect further good news in the budget .
I should point out that I too am a taxpayer paying the highest rate and you & I both know that the OAP is only going one way in my remaining time on Earth and that way is up .
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Yes, the rich exploiting the poor.
 
Forumuser said:
Not true either.
The person who pops in and out of employment and amasses 10 years of contributions gets only the minimum pension- much less than the person who worked every year for 50 years.
You need to check out again the changes in the pension system which occurred in the last few years. You also need to check what is coming as of January,1st, next year.
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Can you link to the changes please? It seems that Citizens Information is out of date.
 
ClubMan said:
I think that gov.ie is more up to date?

State Pension (Contributory)

State Pension (Contributory) is a payment which you may qualify for at 66 if you have enough social insurance contributions. This pension is based on your social insurance (PRSI) contributions.
www.gov.ie www.gov.ie
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Okay so "From 30 March 2018 customers born on or after 1 September 1946 will also have their entitlement to State Pension Contributory assessed using the Aggregated Contribution Method.

A person requires 2,080 contributions, credits or home caring periods in order to qualify for the maximum rate of the State Pension Contributory.

A person can use 1,040 home caring periods and a maximum of 520 credits in the calculation. The maximum rate of the State Pension Contributory using this method is equivalent to the maximum rate for a person with a yearly average of 48 or over.

Where a person has less than 2,080 the rate of entitlement is reduced proportionately. The Increase for Qualified Adult will also be reduced proportionately."

Therefore our PhD student will only get a quarter of the pension that someone gets who has worked for 40 years, unless of course they had kids which they can say they were taking care of... still positive though!
 
faketales said:
Simon needs to clarify when the election will be. Many retirees have an October getaway booked a long time ago and will now be planning for a few weeks in the Canaries for early in the new year.
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Mid November would suit me , I should be back from a trip to Portugal by then .
I’ve always pointed out that I firmly believe that the contributory OAP should be means tested but know that is unlikely to happen in my lifetime and as such I’ll gratefully and happily take whatever is on offer .
After all I worked from the age of 16 and paid large amounts of tax ( and continue to do so ) and PRSI and if successive Governments are afraid of the political fallout of grasping the Pension nettle then I think that I’m more deserving than most in enjoying the current situation.
 
Deiseblue said:
if successive Governments are afraid of the political fallout of grasping the Pension nettle then I think that I’m more deserving than most in enjoying the current situation.
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I think most pensioners share that view. You're a proud member of the "I worked hard all my life" brigade.
Deiseblue said:
I’ve always pointed out that I firmly believe that the contributory OAP should be means tested but know that is unlikely to happen in my lifetime and as such I’ll gratefully and happily take whatever is on offer .
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"Lord, make me chaste – but not yet." St. Augustin would be proud of you!
 
I haven’t seen any press about this but the move to the total contributions approach should significantly reduce pensions for new retirees, especially those with an incomplete history like those that were working abroad in the 90s (lots due to the 80s recession). Currently the pension reductions for having an incomplete pension history are small. For example, average yearly contributions of 20-29 now gives a pension of €236 which is 85% of total. Under TCA the pension would be 50% or less.
 
Sybilla said:
I haven’t seen any press about this but the move to the total contributions approach should significantly reduce pensions for new retirees, especially those with an incomplete history like those that were working abroad in the 90s (lots due to the 80s recession). Currently the pension reductions for having an incomplete pension history are small. For example, average yearly contributions of 20-29 now gives a pension of €236 which is 85% of total. Under TCA the pension would be 50% or less.
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Everyone seems to be focused on the rise of pension age or the loss of parts of the pension through having less contributions over the lifetime. Under the average system you could get a huge chunk of the pension with relatively few contributions. Under TCA you only get what you paid in- plus a few peanuts.
I am surprised that so few people noticed the cap on credits. Under the average system you could use all your years of credits as long you had 10 years of contributions paid in. There are folks around with 30 years of credits. That is going to be abolished- and a cap will be introduced of 520 credits only. This will hit those with a long term illness or many years on unemployment very very hard. Surely there is the NC pension- but it is still a huge change affecting negatively the most vulnerable in society.
 
Forumuser said:
Everyone seems to be focused on the rise of pension age or the loss of parts of the pension through having less contributions over the lifetime. Under the average system you could get a huge chunk of the pension with relatively few contributions. Under TCA you only get what you paid in- plus a few peanuts.
I am surprised that so few people noticed the cap on credits. Under the average system you could use all your years of credits as long you had 10 years of contributions paid in. There are folks around with 30 years of credits. That is going to be abolished- and a cap will be introduced of 520 credits only. This will hit those with a long term illness or many years on unemployment very very hard. Surely there is the NC pension- but it is still a huge change affecting negatively the most vulnerable in society.
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People on JSA long term now, are they given SI credits equal to what a worker gets?
 
Protocol said:
People on JSA long term now, are they given SI credits equal to what a worker gets?
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Depends. You must have worked first for a certain time and paid a specific number of PRSI contributions before you get any credits while on benefit or on allowance.
Somebody who worked for a number of years and paid PRSI will get credits under certain conditions when om JSA.
Somebody who never worked and goes straight on JSA after leaving school and becoming long term unemployed after a certain number of weeks on JSA will get no credits right from the start.

Operational Guidelines: PRSI - Credited Social Insurance Contributions

Operational Guidelines: PRSI - Credited Social Insurance Contributions.
www.gov.ie www.gov.ie
 
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