How is the maximum pension rate calculated?

You have all heard of the maximum weekly pension, which, for year 2019, stood at €237.97 and for year 2020 increased to €243.81.
Following the 2007 pension reforms, there are in place two Maximum Pension Income caps. These are:

• If you are born between 1952 and 1961 the Maximum Pensionable Income cap was €18,562 in 2019 and increased to €19,017.37 for year 2020.
• If you are born on and after 1962 the Maximum Pensionable Income cap stands at €24986 in 2020.

Then, how is the maximum pension rate calculated? Basically two thirds of the maximum pension income is considered, which result is divided by 52 weeks to get the weekly maximum rate.

€19,017.37 (Maximum Pensionable Income cap) * (2/3) (two thirds) * / 52 weeks = €243.81 weekly maximum pension.