State pension help

[Bearsandbulls]

Hi all, I've been asked by my old man to look at my mother's PRSI contributions to determine what, if any, state pension is she entitled to.

Some background info
Born 1962
Commenced work in 1980 and built up 495 PRSI contributions from 1980 to 1990.
Had first child in 1987, and 2nd in 1990 so ceased work in 1990. It looks like she claimed jobseekers or the equivalent over 4 years to the value of 168 credits

Remained out of the work force caring for 4 children until 2017 when she returned to work part time. Collected 101 PRSI contributions between 2017 and 2022 and has since had to leave work due to back issues. Currently receiving disability payments.

I'm normally good investigating this sort of stuff but I am finding this a minefield. Should I be using the 520 rule or TCA approach? If its the 520 rule does the 168 credits she claimed as jobseekers come off the credits she has accumulated to date?

 

[NoRegretsCoyote]

Remained out of the work force caring for 4 children until 2017 when she returned to work part time.

She might be eligible for the homemakers scheme. Were all the kids under 12 for this period? If not, when did the youngest turn 12? There are a maximum of 20 years that can be disregarded for this.

Currently receiving disability payments

Is this illness benefit (not means tested) or illness allowance (means tested)?

By any chance do either of your parents have non-wage income such as rental income? Is your mother by any chance drawing down from an approved retirement fund (ARF) from a previous employment? These can also help with eligibility as class S PRSI is payable which builds up eligibility.

Apologies for all the questions but it's important to make sure (looking backward and going forward) that her PRSI record is accurate so that she can get what she is eligible for in due course.

It would also help a lot if you could attach a picture of her PRSI record with personal details removed.

 

[ClubMan]

Is this illness benefit (not means tested) or illness allowance (means tested)?

Or Disablement Benefit or Disability Allowance.

Disablement Benefit

Disablement Benefit may be payable to you if as a result of an accident at work or a prescribed disease contracted at work, you suffer a loss of physical or mental faculty.

www.citizensinformation.ie

Disability Allowance

A weekly payment to people that have an injury, illness or disability which is expected to last more than a year. Find out how to qualify and rates of payment.

www.citizensinformation.ie

 

[Bearsandbulls]

She might be eligible for the homemakers scheme. Were all the kids under 12 for this period? If not, when did the youngest turn 12? There are a maximum of 20 years that can be disregarded for this.

Yes there would have been a child under 12 from 1990 to 2010 so exactly 20 years. I will look into to signing up for that for her, thank you.

Is this illness benefit (not means tested) or illness allowance (means tested)?

It is disability allowance she receives. My old man has a very modest income as part of a redundancy package to tie him over until his pension kicks in

By any chance do either of your parents have non-wage income such as rental income? Is your mother by any chance drawing down from an approved retirement fund (ARF) from a previous employment? These can also help with eligibility as class S PRSI is payable which builds up eligibility.

No there is no other form of income, just the small payment from my fathers former employer. She has no pension fund set up.

Apologies for all the questions but it's important to make sure (looking backward and going forward) that her PRSI record is accurate so that she can get what she is eligible for in due course

Not at all. I am very grateful for your help on this, thank you.

It would also help a lot if you could attach a picture of her PRSI record with personal details removed.

I requested that last night, will post it up later today

 

[Bearsandbulls]

Or Disablement Benefit or Disability Allowance.

Disablement Benefit

Disablement Benefit may be payable to you if as a result of an accident at work or a prescribed disease contracted at work, you suffer a loss of physical or mental faculty.

www.citizensinformation.ie

Disability Allowance

A weekly payment to people that have an injury, illness or disability which is expected to last more than a year. Find out how to qualify and rates of payment.

www.citizensinformation.ie

It is disability allowance as my father's income formed part of the decision

 

[Bearsandbulls]

Attached is overview of her credits

 

[NoRegretsCoyote]

@Bearsandbulls

The homemakers scheme applied from 1994 so it seems 16 years where she had no PRSI contributions will be disregarded for working out eligibility on the annual average basis.

With disability allowance there is scope for credited contributions I think going forward too.

I am not the expert but I’d imagine with the 16 year disregard she’ll be better off on the annual average than TCA basis. There is a policy proposal to move away from annual average to TCA phased in over ten years but I’m not sure if that will impact her given she is only four years off retirement age.

 

[Conan]

Time out of the workforce minding children (under the age of 12) pre 1994 qualify for credits under the Homecaring Periods Scheme (introduced in 2018). But if you claim credits under this, then your State Pension will be calculated on the Total Contribution Approach only.

 

[Bearsandbulls]

When calculating your total PRSI contributions is it ?

A. Total reckonable paid contributions only
B. Total reconabke paid contributions less Total reckonable credit contributions
C. Total reckonable paid and credited contributions added together

 

[ClubMan]

When calculating your total PRSI contributions is it ?

A. Total reckonable paid contributions only
B. Total reconabke paid contributions less Total reckonable credit contributions
C. Total reckonable paid and credited contributions added together

For the purposes of determining qualification for state pension (contributory) it's "reckonable paid contributions for pension" plus "reckonable credited contributions for pension".

 

[Bearsandbulls]

For the purposes of determining qualification for state pension (contributory) it's "reckonable paid contributions for pension" plus "reckonable credited contributions for pension".

Perfect thank you

 

[lady17]

Bearsandbulls I saw that your mother is now getting disability allowance.

One of my friends is getting disability allowance and she is a few years younger than your mother. She had paid prsi in the past. After she went on disability she was not getting any credits on her prsi history. She found out here that she could be eligible to make voluntary contributions towards her prsi.

Client Eligibility Services​

Department of Social Protection, McCarter's Road, Buncrana, Co.Donegal,
F93 CH79

Tel: (01) 471 5898 or 0818 690690

My friend rang this number, gave her details and asked could she make voluntary contributions. She was advised to fill out a form VC1. A few weeks later she found out she could make voluntary contributions towards her pension.

I would advise you to ring them and ask could you speak to them on your mother's behalf in regards to her pension. Ask could she make voluntary contributions.
Making a few years of voluntary contributions could give her a higher amount of money each week in her pension.

I found that looking under The State Pension (Contributory) in the citizen information website was helpful.

With your mother getting disability allowance she is entitled to a free travel pass, possibly the flue allowance - can request this as 2 lump sums a year in paid Sep/Oct
and in Jan and the household benefits package which is apox 30 pm towards electricity, 10pm towards a phone. If you look on citizens information website under of these headings you can find out more. The flue allowance is means tested but if your parents income is under X amount your mother can apply. I would be sending that from back now and the money will go into your mother's bank account on the payment date for this.
I hope the above is of help to you.

 

[Bearsandbulls]

Bearsandbulls I saw that your mother is now getting disability allowance.

One of my friends is getting disability allowance and she is a few years younger than your mother. She had paid prsi in the past. After she went on disability she was not getting any credits on her prsi history. She found out here that she could be eligible to make voluntary contributions towards her prsi.

Client Eligibility Services​

Department of Social Protection, McCarter's Road, Buncrana, Co.Donegal,
F93 CH79

Tel: (01) 471 5898 or 0818 690690

My friend rang this number, gave her details and asked could she make voluntary contributions. She was advised to fill out a form VC1. A few weeks later she found out she could make voluntary contributions towards her pension.

I would advise you to ring them and ask could you speak to them on your mother's behalf in regards to her pension. Ask could she make voluntary contributions.
Making a few years of voluntary contributions could give her a higher amount of money each week in her pension.

I found that looking under The State Pension (Contributory) in the citizen information website was helpful.

With your mother getting disability allowance she is entitled to a free travel pass, possibly the flue allowance - can request this as 2 lump sums a year in paid Sep/Oct
and in Jan and the household benefits package which is apox 30 pm towards electricity, 10pm towards a phone. If you look on citizens information website under of these headings you can find out more. The flue allowance is means tested but if your parents income is under X amount your mother can apply. I would be sending that from back now and the money will go into your mother's bank account on the payment date for this.
I hope the above is of help to you.

thank you lady 17. I looked at voluntary contributions for her and I've attmpted to break it down below

Shas 596 paid contributions and 168 credited. therefore 764 in total
She started contributting in 1980 and will hit retirment age in 2028. 48 years in total. however she would have been automatically entitled to 16 years homemaker scheme therefore the net years is 32 (48-16)
764 credits / 32 years = 23.875 annual average. rounded up to 24 per guidelines
between 20-29 credits entitles you to a weekly pension of €225.90

She would need and extra 6 average credits per year to qualilfy for the 30-39 bracket of €238.50 per week
6 * 32 years = 192 credits
192 credits = 4 years contributions when rounded up
4 years by the mimimum contribtution charge for her class is €2000 (4 * €500)
€2000 over 4 years would be wortwhile if she can step up 1 level in her pension entitlement.