Jack Frost
Registered User
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The following is from Report of the Commission on Pensions from October 2021. In subsequent press comment I recall that the transition arrangements (proposed to last 10 years) may kick off in 2024. Since then I've not heard a dickey bird either about "Transitional Arrangements" or a potential effective date. Of course I may have missed something but when on the phone last year to someone in the dept responsible for pensions, I was told they've not heard anything either and something like this needs a long lead in time and legislation. Possibly the Govt is kicking a change from the current arrangement of choosing between TCA and Average down the road, again.She's lucky, because the system will, most likely, change next year and the total contributions approach will be used.
This is a possible transition programme,The following is from Report of the Commission on Pensions from October 2021. In subsequent press comment I recall that the transition arrangements (proposed to last 10 years) may kick off in 2024. Since then I've not heard a dickey bird either about "Transitional Arrangements" or a potential effective date. Of course I may have missed something but when on the phone last year to someone in the dept responsible for pensions, I was told they've not heard anything either and something like this needs a long lead in time and legislation. Possibly the Govt is kicking a change from the current arrangement of choosing between TCA and Average down the road, again.
8.6. Transitional Arrangements The Commission is conscious that some people would qualify for a better rate under the Yearly Average approach than under this Total Contributions Approach design – specifically, those with shorter contribution histories, and those with more than 10 years of credited contributions. In order to protect upcoming pensioners from a sudden and significant change in calculation method, the Commission recommends that for those who are better off having their pension entitlement calculated under the Yearly Average approach, a phased transition to the Total Contributions Approach should apply gradually over a 10 year period. • The Commission recommends that for the transition period, where a person does not qualify for the maximum weekly rate of payment under the Total Contributions Approach and would have been better off under the Yearly Average Approach, a proportion of the rate will be calculated under the Yearly Average Approach and the remainder under the Total Contributions Approach.21 • These proportions will gradually change over time – pensioners who would be better off under the Yearly Average approach who qualify for the State Pension Contributory in the first year of the transition will receive 90 per cent of the rate calculated under Yearly Average approach, and 10 per cent under the Total Contributions Approach for the duration of their pension payment. Pensioners qualifying in the second year of the transition, will have receive 80 per cent of the rate calculated under Yearly Average, and 20 per cent under the Total Contributions Approach for the duration of their pension payment, and so on, with the full transition completing over 10 years. This is similar to the approach taken in Norway when they introduced a change in the calculation method.
How what would Affect you?Can you clarify how that would effect myself on an existing 98% pension with 30yrs contributions
It wouldn't at all. A contributory pension is a personal entitlement and your spouse's income can't impact your entitlement.Can you clarify how that would effect myself on an existing 98% pension with 30yrs contributions
I am hoping someone can clarify if my wife will be entitled to a full contributory pension. She is 65 years old and is from Germany, but has lived and worked in Ireland since 2008 when she was 51. The company she worked for closed down 2 years ago and she didn't seek further employment or claim any benefits. So she has 12 years class A contributions, (ie 624). Before she moved here, she doesn't really have to many SW contributions in Germany, other than about 3 years of SW contributions back in the late 70's early 80's.
If your wife is getting 66 years this year, she will get about Euro 260.10, because she has an average of 41.6 ( to be rounded up to 42). If she is getting 66 next year, she will drop down to an average of 39- which brings her into a different pay band: Euro 238.50Greetings,
I am hoping someone can clarify if my wife will be entitled to a full contributory pension. She is 65 years old and is from Germany, but has lived and worked in Ireland since 2008 when she was 51. The company she worked for closed down 2 years ago and she didn't seek further employment or claim any benefits. So she has 12 years class A contributions, (ie 624). Before she moved here, she doesn't really have to many SW contributions in Germany, other than about 3 years of SW contributions back in the late 70's early 80's.
My question is, does the clock start ticking when calculating her overall contributions when she first started working in Ireland in 2008, thereby I think entitling her to the max pension, or will she need to go back and find the few years contributions she made in Germany and receive a pro-rata amount.
Thanks in advance for any guidance you can provide.
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