Citizens' Information – Will I get a reduced State Pension?

Question: I turned 65 in June 2012. I am getting a reduced State Pension (Transition) since my yearly average of PRSI contributions was less than 48. I heard the rates for State Pension (Contributory) were changed in September. Will my pension be reduced when I turn 66? Answer: No, it will not be reduced. People getting a State Pension (Transition) are automatically paid State Pension (Contributory) from age 66 and there is no need to re-apply. If you qualified for a State Pension (Transition) before September 1 2012, you will stay on the same rate when you transfer to a State Pension (Contributory) when you turn 66. For example, if you qualified for a State Pension (Transition) before September 1 and your yearly average contributions were 24, you get a pension of €225.80 weekly. When you turn 66 you transfer to the State Pension (Contributory) and your payment will stay the same. However a new applicant (after September 1 2012) for a State Pension (Contributory) with the same yearly average of contributions would qualify for a pension of €196. Although most people getting a State Pension (Transition) transfer automatically, some people might be better off re-applying for a State Pension (Contributory) at age 66. For example, if you were self-employed and paid class S contributions, you might qualify for a higher rate of pension at 66 (since class S contributions do not count towards a Transition Pension). In a few cases, the credits accompanying the State Pension (Transition) may give you a higher yearly average and allow you to qualify for a higher pension when you reach 66. The Department of Social Protection will tell you which option is better for you and in most cases will transfer you automatically if you qualify for a higher-rate State Pension (Contributory). Further information is available from Tuam Citizens Information Service which provides a free and confidential service to the public. Tel: 0761 07 7740/email: tuam@citinfo.ie Address: c/o Social Services Centre, Dublin Road, Tuam. Open: Tuesday, Wednesday, Friday 11am-4pm, Thursday 11am-2pm. Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service, 0761 07 4000.