Shortfall of prsi contributions - Voluntary contributions

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pension query

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I had accumulated 380 prsi contributions before I became a public sector worker over 38 years ago. I am now 65, retired from the public service with a very part time job and wondering if it is possible to buy extra contributions to bring me up to the required 520.
 
If you are earning a minimum of 38 euro per week from your part time job you will be entitled to get one class A contribution per week.

If you ceased this part time employment you can then make voluntary contributions up to age 70. This would cost you 500 euro per year. You can start voluntary contributions from immediately after you cease employment. There is no necessity to wail until the start of the next calendar year.

Currently you could claim a pro rata pension at age 66.
If you do this you can no longer gain any extra Prsi contributions.

You need to calculate how much pro rata pension you would gain at age 66 compared to the pension you will achieve after you reach 520 contributions to see if this is worthwhile.

Calculate the cost of voluntary contributions + the loss of pro rata pension from age 66, in order to see how many years it will take you to break even.

Include pre entry and change of status credits in your calculations.

Also include the mix of Total contributions and Yearly average contributions ratio for the year you will reach the 520 contributions level.
 
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Hi @S class I was under the impression that I had to have 520 contributions regardless before I would qualify for anything? I did convert my last years contributions from D to A but I was told these would not count until I had reached 520 contributions.

Thanks @S class I just see my reply crossed over with your reply.
 
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@pension query
You need 520 full rate paid contributions to qualify for a normal contributory pension calculated using the TC + YA methods.

With your current 380 contributions, at age 66 you could immediately qualify for a pro rata pension. This will be a lot less than the pension you could achieve if you manage to reach the 520 full rate paid level.

The information you have received is incorrect.
Your converted (change of status) credits will be counted in both cases. They will count alongside your existing 380 + the contributions from your current employment if you decide to choose to take a pro rata pension at age 66.

Spend a few hours calculating out both pension options.
It could be advantageous to you to defer your pension until you reach the 520 full rate paid level.
 
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@S class Hi, I rang the penion office yesterday and they told me that under no circumstances would I able to use my converted (change of status) count if I go pro rata with the 260. It seems to depend on who you speak to.
 
Indeed- everything in the Pension Office depends on whom you speak. You get countless opinions and you will be no wiser after any call you made.
It is like the lottery- either you win something- or you don't.
 
This a thousand times.

Telephone enquiries have their place, but when you are seeking hard information that you may want to rely on in the future hard or email copy is the only way.
 
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