Barry Andrews (Dún Laoghaire, Fianna Fail)
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Question 241: To ask the Minister for Social and Family Affairs the pension inheritance rights for the surviving partner of a cohabiting couple in relation to the deceased's pension; and if he will make a statement on the matter. [6782/07]

Séamus Brennan (Dublin South, Fianna Fail)
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Social welfare pensions, both contributory and non-contributory, are paid on the basis of a person's personal entitlement to a payment having satisfied the qualifying conditions and there is no right to inherit a pension on the death of the pensioner. The surviving spouse of a pensioner may apply for a widow(er)'s contributory pension which can be based on either the deceased's or surviving spouse's insurance contributions. Alternatively, a means-tested widow's non-contributory pension may be paid where the surviving spouse is under 66. Those 66 and over who do not qualify for a widow(er)'s contributory pension may apply for the means tested state pension (non-contributory) which is paid regardless of a person's status. Eligibility for widows and widowers pensions is confined to surviving members of married couples, it does not apply to cohabiting couples.

There are no 'inheritance' rights in respect of occupational pension schemes in that a member cannot 'will' his or her pension entitlements. Occupational pension schemes are set up as trusts and the trustees will pay out benefits to surviving spouses/partners of deceased members in accordance with the rules of the scheme.

Benefits are generally payable by pension schemes on the death of a member in service and on death-in-retirement and the trust deed and rules will specify the form and amounts of the benefits payable in the different circumstances. Death in service benefits in most schemes take the form of a lump sum but many schemes in addition also pay pension benefits to spouses and other beneficiaries.

Benefits paid in pension form will be a percentage of the deceased member's actual or prospective pension as the case may be and will be paid by the trustees to the relevant recipient (s) for their lifetime.

Some pension schemes provide benefits only for the 'lawful spouses' of deceased married members without providing any equivalent death benefits for non-marital cohabiting, or non-cohabiting, partners. That is a matter of scheme design and schemes, being voluntary by nature, are not obliged by law to provide death benefits to either surviving spouses or surviving partners unless their rules so provide.

Other schemes may provide for payment of death benefits to 'dependants' rather than spouses of deceased members. The scheme rules will generally define what is meant by 'dependants'. The definition will generally include the spouse of the member and anyone dependent on the member for the ordinary necessities of life. Trustees may need to exercise some element of judgement in this regard in ensuring the benefits are paid in a form and in shares which reflect the needs of the dependants. Often there are discretionary powers given to the trustees in the scheme rules to enable them to decide on the destination of death benefits.

Most pension schemes provide for payment of lump sum death benefits to be made directly to spouses or dependants rather than to the estate of the deceased. The deceased member may have completed a form of nomination of dependant wherein they nominate the person to benefit from the lump sum payment. Such a letter or expression of wishes cannot bind the trustees but they will normally try to give effect to the deceased members' wishes. If the lump sum payment is made to the estate then it will devolve in accordance with the deceased member's will or under the rules of intestacy. It is only lump sum payments that may be administered through the deceased members' estate if these have been paid to the deceased member's personal representative by the trustees of the scheme.