Could anyone confirm I'm adding this up right (combined TCA and YA approach)?

[Hooverfish]

This is probably one for @S class but jump in anyone that knows!

My problem is I started work part time in shops (like we all used to do on Saturdays that long ago) aged 16 in 1977 in Britain.
I moved to Ireland in 1992. I was self employed both in Britain and Ireland.
(Yes, I've applied to buy back the UK pension years).
I will hit state pension age at the beginning of 2026, and actually get to receive some in 2027.

From reading the excellent articles on Citizen's Advice and gov.ie, it's my understanding this means I will be in the second year that encounters the "combined" total contributions TCA calculation (70%) and yearly average YA method (30%) because it's calculated from when you actually start getting paid, called "drawdown".

I won't get a full pension in Ireland because I'll only have 1716 contributions paid since 1992 (1716 contribs or 82.5% of 2080 max contribs = €238.67 /week) so then "Method 2" (the combined approach) comes into play.

My question is around a piece of information on this page: https://www.gov.ie/en/publication/4f38a6-operational-guidelines-state-pension-contributory/
It says:
"Class S PRSI is payable by the self-employed. Persons who started paying class S PRSI on 6 April 1988 (the date of introduction of PRSI for the self-employed) will, if it is more advantageous, have entitlement to State Pension (Contributory) based on their PRSI record from that date (even if they had previous social insurance contributions) provided that they satisfy date of entry prior to age 56 on that date."
Thing is, I hadn't moved to Ireland in 1988 but I was self employed in Britain?

If I use my *actual* first social insurance contributions from 1977, the calculation goes:
No of years I will be working 2026-1977 = 49 and this means it will be assumed I paid 35 per year contributions for YA.
Pension will come out at €249.30 based at 2025 rates.

But if I use the paragraph I quoted above, then no of years I work is 2026-1988 = 38. Average contributions 1716/38 = 45 and the pension rate comes out at €283.70.
And if I use the year I started working self employed IN IRELAND that's 1992, 2026-1992 = 34. Average contributions 1716/34 = 50 or €289.30 (full pension).

Now we get into the combined bit.
70% is at the TCA rate: €238.67 * .7 = €167.07
30% of YA using my real working life from 1977 is €74.79 giving a total pension of €241.85
But using 30% with the 1988 date would be €85.11 total pension = €252.18
And using 30% with the 1992 date would be €86.79 = €253.86

Yes, I know it's a small difference per week, but what's the right way to calculate it/ what have I misunderstood?

Thanks for any help!

 

[S class]

I have no experience of this as it did not apply to me.

Trying to figure it out it seems that you would need to have actually started paying class S from 6th April 1988.

As you only moved to Ireland in 1992 you cannot meet this requirement.

I think this concession is for pre 1988 self employed people who might have a gap in their Prsi record because they were not allowed into the Prsi system before 6th April 1988.

 

[Lisgoold]

@Hooverfish

Why do you say you'll reach pension age at the beginning of 2026, but won't receive anything until 2027??

 

[Hooverfish]

@Hooverfish

Why do you say you'll reach pension age at the beginning of 2026, but won't receive anything until 2027??

Because that's what happens. There is a year between 65 the pension age and when you get paid 66. You can apply for a jobseeker's benefit payment instead but they don't hassle you to get work - that is called BP65 (benefit payment 65).

 

[Hooverfish]

I have no experience of this as it did not apply to me.

Trying to figure it out it seems that you would need to have actually started paying class S from 6th April 1988.

As you only moved to Ireland in 1992 you cannot meet this requirement.

I think this concession is for pre 1988 self employed people who might have a gap in their Prsi record because they were not allowed into the Prsi system before 6th April 1988.

OK sounds like it's the lowest figure then... Curses, it seems unfair to be penalised for paying in to the system early because you worked hard as a young 'un, but at least the UK pension payments will bring it up a bit! I did also begin self employment in Britain in 1984... so I s'pose there is a chance they will take that into account. When I find out in 2 yrs time I'll drag this thread up.