UK Pensions "Opting Out". Circa late 90's.

Hi all. I'm Irish and worked in the UK for close to 20 years. Now back living in Ireland and have been paying pension contributions since 1998.

However in the mid 90's, the UK Gov introduced an 'opting out" option. Which related to state pension contributions made by the UK Gov.

Whereby the individual had the option for the UK Gov to either pay a contribution to a persons private pension, or to continue to put that payment into the individual persons UK state pension fund.

The payment contribution from the UK Gov was about £250 per annum.

I opted out. So the UK contribution was paid into my private pension.

It has been mentioned to me recently that as I "opted out" that I was no longer eligible for any UK pension whatsoever. Which I doubt is the case.

Has anybody had any experience of this?

Thanks

PS: Is it only 10 years PRSI contributions that have to be made to get an Irish full state pension? I think it's 30 years in the UK.

I was self employed from 1998 for 5 years but I made sure that I paid stamp during those times and became PAYE from 2003.

Will I be eligible for full Irish state pension?

lasno

You might find this useful....

https://www.gov.uk/check-state-pension

hawthorne

Brooklynn Fluffy Landmark wrote: »

PS: Is it only 10 years PRSI contributions that have to be made to get an Irish full state pension? I think it's 30 years in the UK.

I was self employed from 1998 for 5 years but I made sure that I paid stamp during those times and became PAYE from 2003.

Will I be eligible for full Irish state pension?

If you started paying into the Irish system for the first time(!!!) at the age of 55, you would have the right to a full pension by the age of 66.
This is an anomaly and not the standard.
There will be a new system in place for all as of 2020. A full contributory pension is given to those with 40 years of contribution. 10 of those 40 years can be spent on benefit, a further on caring for children or an elderly/sick person.
If you did not sign on to get any benefits at anytime in your working life in in Ireland or did not care for anybody, you know how many years you actually paid into the system. Each year gives you 1/40 of the Irish contributory pension. You also must have at least 10 years paid into the Irish system to get anything at all. If you do not have those 10 years paid in, you might be able to use your UK years to reach the 10 year period.
You might have pension rights in the UK for years paid into the UK system. Each year you actually paid in gives you something in return.
Looks like that your future pension will be a combined Irish/UK pension. You get a pro rata pension form each country which makes up your total pension.
http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/older_and_retired_people/state_pension_contributory.html

@Hawthorne

Thanks for the info.

@Hawthorne. Possibly my post was confusing? Re:30 years. My reference was that I thought you had to work 30 years in the UK to get a full entitlement. I'm not 55 yet.

hawthorne

Brooklynn Fluffy Landmark wrote: »

Thanks for the info.

@Hawthorne. Possibly my post was confusing? Re:30 years. My reference was that I thought you had to work 30 years in the UK to get a full entitlement. I'm not 55 yet.

If you are not 55 years yet you get your pension for sure under the new system. Pension age will be raised as well.
It is 67 from 2021 and 68 from 2028.
It might be raised further in years to come.
Enda Kenny hinted last year that the 10 year minimum input might be raised as well in the future. In other countries- like Spain- the minimum input is already 15 years.
I do not know much about the UK side of the pension.

Thanks again Hawthorne, when you say "You get a pro rata pension form each country which makes up your total pension".

I'm presuming that you mean that say for example, that if the Irish state pension was €250 per week when I retire, (touches wood ), that the combined pension from both the UK and Ireland could only be up to a max of €250?

hawthorne

Brooklynn Fluffy Landmark wrote: »

Thanks again Hawthorne, when you say "You get a pro rata pension form each country which makes up your total pension".

I'm presuming that you mean that say for example, that if the Irish state pension was €250 per week when I retire, (touches wood ), that the combined pension from both the UK and Ireland could only be up to a max of €250?

It could be more or less than E250.
You get a percentage from the Irish contributory pension and a percentage of the UK contributory pension. The percentage you are getting from each country depends on your paid contributions into each system.
Example: Lets say you paid 25 years into the Irish system.You have no time on benefit and no time on careing. That means your are entitled to 25/40th of the full Irish pension.If your day for going on the pension would be today and the new system would be used, you would be entitled to about E 152 based on the maximum payment of E243.30.
The same would be happening on the UK side. I have no figure for the UK and do not know enough about it. But I presume it should work the same as in Ireland.The UK authorities would also look at your paid years and would give you a percentage based on their maximum payment.

Thank you so much Hawthorne, very clear and very helpful. I appreciate your time. Thank you.

SCOOP 64

You can get a pension statement from the UK how much it would be worth today with your total contributions,this is what i did,this also included contributions in the years i opted out ,which i through i wouldn't be entitled to as i opted out in them years,
im in same situation as you opted out in 90s, this option of opting out is longer available in UK now. but it seems i get the private pension from opting contributions and the UK pension for these years as well.