I started working in 1976, aged 15. I worked until 1999 when our first child was born. I had never heard of the homemaker’s scheme until I read your PRSI article in last week’s paper. I read up on it and it came into effect in 1994. It also said that if you were receiving children’s allowance, you didn’t need to apply.
I went back to work in 2005 and am working since. I am just wondering, will I be automatically allowed the homemaker’s scheme for the years I was at home rearing our family or should I have applied for it? If the latter is the case, is it possible to apply now to have it backdated? That is probably hoping for too much. I am always lost and confused on tax and PRSI. I would be delighted to have an idea about where I stand when trying to calculate my contributions. I am 53 now and started work in 1976 at 15.
You now have to register for the homemaker’s scheme before the end of the contribution year after the year in which you first become a homemaker. So, for example, if you become a homemaker in 2013, you should register before 31 December 2014. But as you point out, you do not need to register if you are getting child benefit and are providing children with full-time care or you are getting carer’s allowance, carer’s benefit or the respite care grant.
If you did miss out, you have been paying 52 contributions a year since you were 15 (1976) and continue to pay them until you are 68 in 2028 (the pension age is raised to 68 that year).
Your average would be 46.1 contributions, so you would get €225.80 a week. Contact the Department of Social Protection, McCarter’s Road, Buncrana, Donegal, on 1890-690-690 to confirm that you were eligible for the homemaker’s scheme during those years, as it would bring your average over 48, allowing you to get the full pension of €230.30 a week when you do get it.
In 2003 I moved over to Ireland to be with my partner, a self-employed farmer. My first PRSI contribution was made in 2004. There was an issue with 2006 when our accountant at that time failed to put in payment. We set up a partnership in 2007 and PRSI contributions have been made on my part ever since. In August 2015 I will be 66, so will the payment for 2014 be considered the last contribution that matters for a pension or will another payment be accepted for 2015?
The first hurdle is that you need 520 contributions (10 years) before you are 66. In your situation, you started paying PRSI contributions in 2004, so even with missing one year in 2006, it still means that you will have the 520 contributions that are required. 2004 will be deemed to be the first year you entered the system. So if you paid in 52 contributions each year (excluding 2006) you have 520 contributions after you pay this year. Over the 11 years, the average will be 47.2, putting you in the second tier. It would give you a contributory pension of €225.80 a week
II was reading your article about new PRSI opportunities in last week’s Irish Country Living. I would like to know if I would benefit from this. I started work in June 1975 and paid class A PRSI contributions until November 1976 (total 75 contributions). From November 1976 to December 2010 I worked in the HSE, previously NEHB, and paid class D contributions. I now assist my husband in running the farm. The land and bank account are in both names. I am 57 years old. If I start to pay PRSI now would this entitle me to a contributory pension?
The different classes in PRSI shows how confusing the PRSI system can be. According to Declan McEvoy of IFAC, if you have 10 years of class S (self-employed) you can opt to base your contributory pension on these and ignore the previous class D contributions to work out the average. You said you are 57, so if you started paying now you would have 520 contributions (10 years) by the time you reach 67 in 2024.
You actually benefit from the fact that the retirement age increased to 67 in 2021. If it was still 66 you would not have 520 class S contributions and you would have to average all the years you worked.
I worked from 1966/67 until 1978/79 without a break, earning 626 contributions (printout obtained from Social Welfare). After that from 1980 until 2005, I had no contributions as I left to raise children and work the farm and haulage business with my husband. I did not take a wage for these years until 2006.
I am now on a small wage from 2006 until present, but it is my understanding from your article that these contributions may not be taken into account for the contributory pension. I was led to believe at the time by our accountant that they would be. I am 66 in January next year and unsure as to my entitlement to a pension from the contributions earned from my earlier employment.
Firstly, if you received a wage from your husband since 2006, any contributions paid against that income will not be counted. You will be entitled to a refund. If you were working in an informal partnership before that, you can make a case to have the years from 1980 to 2005 taken into account. A partnership normally exists if some of the following factors apply:
• Each partner writes cheques on the business accounts in his/her own right.• There is a joint business account.• It is apparent to those doing business with the partnership that a partnership exists.• Business accounts/activities are in joint names of the partners.• Each partner makes a significant contribution to the running of the business.• The business is owned jointly by the partnership (note: the farm does not have to be jointly owned, although it is a positive factor where it is jointly owned).• The profits and losses of the partnership are shared by each partner. They do not have to be shared on a 50:50 basis – it is up to the partnership to decide, but each must have an income of €3,174 (€5,000 currently) at least.If you think you will qualify for this, you can make a case. However, if not, the other option is to look for the homemaker’s scheme to ensure the years from 6 April 1994 (when the scheme was introduced) up to 2005 will not count. You should talk to you accountant as you have to decide to make the case for partnership or homemaker, you cannot pick one and then try the other if you fail.
If you just relied on the early years’ PRSI contributions over the 49 years you worked, the average would just be 13.7, only entitling you to a weekly pension of €92. Even if you could get up to the next tier (15-19) it would raise you to €150 a week. One last thing, you might be better going to a new accountant if he/she was the one who gave you the bad advice on the PRSI contribution for income from your husband’s business in the first place.
I started working in 1976, aged 15. I worked until 1999 when our first child was born. I had never heard of the homemaker’s scheme until I read your PRSI article in last week’s paper. I read up on it and it came into effect in 1994. It also said that if you were receiving children’s allowance, you didn’t need to apply.
I went back to work in 2005 and am working since. I am just wondering, will I be automatically allowed the homemaker’s scheme for the years I was at home rearing our family or should I have applied for it? If the latter is the case, is it possible to apply now to have it backdated? That is probably hoping for too much. I am always lost and confused on tax and PRSI. I would be delighted to have an idea about where I stand when trying to calculate my contributions. I am 53 now and started work in 1976 at 15.
You now have to register for the homemaker’s scheme before the end of the contribution year after the year in which you first become a homemaker. So, for example, if you become a homemaker in 2013, you should register before 31 December 2014. But as you point out, you do not need to register if you are getting child benefit and are providing children with full-time care or you are getting carer’s allowance, carer’s benefit or the respite care grant.
If you did miss out, you have been paying 52 contributions a year since you were 15 (1976) and continue to pay them until you are 68 in 2028 (the pension age is raised to 68 that year).
Your average would be 46.1 contributions, so you would get €225.80 a week. Contact the Department of Social Protection, McCarter’s Road, Buncrana, Donegal, on 1890-690-690 to confirm that you were eligible for the homemaker’s scheme during those years, as it would bring your average over 48, allowing you to get the full pension of €230.30 a week when you do get it.
In 2003 I moved over to Ireland to be with my partner, a self-employed farmer. My first PRSI contribution was made in 2004. There was an issue with 2006 when our accountant at that time failed to put in payment. We set up a partnership in 2007 and PRSI contributions have been made on my part ever since. In August 2015 I will be 66, so will the payment for 2014 be considered the last contribution that matters for a pension or will another payment be accepted for 2015?
The first hurdle is that you need 520 contributions (10 years) before you are 66. In your situation, you started paying PRSI contributions in 2004, so even with missing one year in 2006, it still means that you will have the 520 contributions that are required. 2004 will be deemed to be the first year you entered the system. So if you paid in 52 contributions each year (excluding 2006) you have 520 contributions after you pay this year. Over the 11 years, the average will be 47.2, putting you in the second tier. It would give you a contributory pension of €225.80 a week
II was reading your article about new PRSI opportunities in last week’s Irish Country Living. I would like to know if I would benefit from this. I started work in June 1975 and paid class A PRSI contributions until November 1976 (total 75 contributions). From November 1976 to December 2010 I worked in the HSE, previously NEHB, and paid class D contributions. I now assist my husband in running the farm. The land and bank account are in both names. I am 57 years old. If I start to pay PRSI now would this entitle me to a contributory pension?
The different classes in PRSI shows how confusing the PRSI system can be. According to Declan McEvoy of IFAC, if you have 10 years of class S (self-employed) you can opt to base your contributory pension on these and ignore the previous class D contributions to work out the average. You said you are 57, so if you started paying now you would have 520 contributions (10 years) by the time you reach 67 in 2024.
You actually benefit from the fact that the retirement age increased to 67 in 2021. If it was still 66 you would not have 520 class S contributions and you would have to average all the years you worked.
I worked from 1966/67 until 1978/79 without a break, earning 626 contributions (printout obtained from Social Welfare). After that from 1980 until 2005, I had no contributions as I left to raise children and work the farm and haulage business with my husband. I did not take a wage for these years until 2006.
I am now on a small wage from 2006 until present, but it is my understanding from your article that these contributions may not be taken into account for the contributory pension. I was led to believe at the time by our accountant that they would be. I am 66 in January next year and unsure as to my entitlement to a pension from the contributions earned from my earlier employment.
Firstly, if you received a wage from your husband since 2006, any contributions paid against that income will not be counted. You will be entitled to a refund. If you were working in an informal partnership before that, you can make a case to have the years from 1980 to 2005 taken into account. A partnership normally exists if some of the following factors apply:
• Each partner writes cheques on the business accounts in his/her own right.• There is a joint business account.• It is apparent to those doing business with the partnership that a partnership exists.• Business accounts/activities are in joint names of the partners.• Each partner makes a significant contribution to the running of the business.• The business is owned jointly by the partnership (note: the farm does not have to be jointly owned, although it is a positive factor where it is jointly owned).• The profits and losses of the partnership are shared by each partner. They do not have to be shared on a 50:50 basis – it is up to the partnership to decide, but each must have an income of €3,174 (€5,000 currently) at least.If you think you will qualify for this, you can make a case. However, if not, the other option is to look for the homemaker’s scheme to ensure the years from 6 April 1994 (when the scheme was introduced) up to 2005 will not count. You should talk to you accountant as you have to decide to make the case for partnership or homemaker, you cannot pick one and then try the other if you fail.
If you just relied on the early years’ PRSI contributions over the 49 years you worked, the average would just be 13.7, only entitling you to a weekly pension of €92. Even if you could get up to the next tier (15-19) it would raise you to €150 a week. One last thing, you might be better going to a new accountant if he/she was the one who gave you the bad advice on the PRSI contribution for income from your husband’s business in the first place.
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