Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Transition from averaging to TCA calculation announced for the contributory pension

  • 12-09-2023 2:10pm
    #1
    coylemj
    Registered Users, Registered Users 2 Posts: 25,482 ✭✭✭✭


    At the moment, the Dept. of Social Protection calculates your state (contributory) pension under the averaging system and the total contributions approach (TCA) and you get the higher rate.

    This has just been announced ...

    From January 2025 there will be a 10-year phased removal of the Yearly Average Method, which means that all pensions will be calculated using only the Total Contributions Approach (TCA) by 2034.

    During the 10-year transition period, pensions will be calculated using two methods:

    the first method will use the full TCA approach

    the second method will, starting in 2025, calculate what your pension would be under the existing Yearly Average Method. The pension rate of payment will then combine 90% of this yearly average rate with 10% of the TCA rate. The proportion accounted for by the Yearly Average Rate will then reduce by 10% over each of the subsequent 9 years until the pension calculation is fully based on the TCA method only.

    See the last section 'A fairer method to calculate your State Pension (Contributory)' here ...

    https://www.gov.ie/en/publication/90d8b-changes-to-the-state-pension-contributory-what-you-need-to-know/



Advertisement