Possible UK and Irish Pension holder, very confused.

[world201812]

Posting on behalf of someone close to me. Public sector worker in Ireland, previously worked in the UK as a public sector worker there.

It appears they will have the UK entitlement to a portion of a UK pension, if they buy back a relatively small number of years.

So potentially there could be an entitlement to say 25% of a UK state pension (payable from 65) plus a preserved UK NHS pension from 60.

Now, that that they are back in Ireland, if the person joined the HSE pension scheme in 2008, what year would they have to work to qualify for the HSE pension (pro-rata based on the fact that I won’t have a full 40 years’ service or whatever)? Is it 60, 66 or 68?

Am I right in thinking the state pension in Ireland will be payable at 68 for someone who commenced work circa 2007?

The reason I ask the above is they are considering buying back UK years of state pension if eligible, but wondering what implications are in terms of could this potentially mean if they have this UK entitlement could it disqualify them from an Irish state pension?

I presume if you have a UK pension and live in Ireland you pay tax on it here?

Part reason for considering is in relation to Brexit too.

Are there any factors to consider? Reasons not to buy back UK state contributions?

Any links to relevant online material? Thank you.

 

[Early Riser]

Now, that that they are back in Ireland, if the person joined the HSE pension scheme in 2008, what year would they have to work to qualify for the HSE pension (pro-rata based on the fact that I won’t have a full 40 years’ service or whatever)? Is it 60, 66 or 68?

As a post-2004 entrant your occupational pension age is 65 (you could apply for an actuarially reduced pension earlier). This is for your HSE occupational pension.Your HR office should be able to provide further details on your pension scheme. You could try the HSE modeller for an approximate estimate of your entitlements:

http://nss.hse.ie/PensionsEstimator/calculators.asp#

Your HSE occupational pension is coordinated with the State Contributory Pension. The State Pension is currently payable from age 66. In 2021 it is due to change to 67 and in 2028 to 68. So it depends on your date of birth as to when you become eligible. The way the pension is calculated is due to change to a total contributions model around 2020/21. There are more details on the State Pension here:

http://www.citizensinformation.ie/e...etired_people/state_pension_contributory.html

Others are much better placed to advise you on your UK pension contributions and any possible negative implications - but on the face of it, I don't know of any.

 

[world201812]

Thanks so much for getting back to me Early Riser.

So, in summary 50% of HSE salary at 65, plus a state pension at 68.

Anyone have a notion/advise on the UK element of the initial query/any information of use?

Much appreciated.

 

[Early Riser]

o, in summary 50% of HSE salary at 65, plus a state pension at 68.

Er, No. Your HSE occupational pension will be payable at 65 but it will not be 50% of salary. If you had a full 40 years of HSE service your occupational pension should amount to 50% salary minus the then full rate for the State Pension.The latter is paid separately and makes up part of the 50% - it is not in addition to it.(You may be entitled to a supplementary pension in the period between 65 and State Pension age to make up for its loss - there are conditions attached to this).

But I take it from your OP that you will not have 40 years HSE service at 65? If so, it will be a lower figure, pro-rata.

In relation your other query, I am not sure if you may have seen the posts re UK pensions in this thread ?
https://www.askaboutmoney.com/threads/contributory-irish-uk-pensions.205616/page-2#post-1554236

 

[world201812]

Hi Early Riser,

Thanks and apologies for my hasty response.

Yes, so they will be approximately five years short of 40 years service at 65 years of age, so the pension entitlement will be 35/40 of the full HSE Pension?

Is there anyway to ‘buy back’ the five years? Or the cost prohibitive? Enquired briefly before but there seems to be no information available for buy back of years.

Also, any idea if its possible to buy back pension for time on maternity leave/parental leave/career break etc?

So between 65 and 68 you’d get the HSE pension only.

Thanks.

 

[Early Riser]

Yes, so they will be approximately five years short of 40 years service at 65 years of age, so the pension entitlement will be 35/40 of the full HSE Pension?

The calculation is slightly more complex than that but 35/80 of salary should give you an approximation. Note: that figure is inclusive of the State Pension which in your case would not be payable until 68. You may be eligible for a Supplementary Pension from the HSE in the interim period to make up the difference until State Pension becomes payable. There are conditions attached to this - basically you must not be engaged in any economically gainful employment and you must not be obtaining, or eligible to obtain, a Social Welfare Payment. For example, under current rules you would be eligible to apply for Jobseeker's Benefit at 65 for 9 months anyway.

Is there anyway to ‘buy back’ the five years? Or the cost prohibitive? Enquired briefly before but there seems to be no information available for buy back of years.

If you are a member of a post-2004 scheme (and not the post 2012 Single Scheme) you should be eligible to buy back years. It is not cheap but may be worth it. This document is not from the HSE but it may give you an indication :

http://www.nuigalway.ie/media/pensionsandinvestments/files/Purchase-of-Notional-Years.pdf

Another option is to purchase Additional Voluntary Contributions. This would be with an insurance company. Your contributions would be tax deductible - as they would be for buying back years. This document might help re the pros and cons of each:

[broken link removed]