Ciarán Lynch (Cork South Central, Labour)
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Question 352: To ask the Minister for Social and Family Affairs her views on whether the advice to State non-contributory pension recipients that any portion of the pension saved will be means tested and could result in reduction or withdrawal of the State non-contributory pension is likely to intimidate vulnerable people and to deter savings; and if she will make a statement on the matter. [45979/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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State Pension (Non-Contributory) is a means tested payment and all income is assessable as means. This includes cash income, private pensions, foreign pensions, the value of any property (excluding the person's own home) and the value of any investments and capital. A pensioner is obliged to declare all means, and to inform the department of any change in his/her circumstances.

Where a pensioner chooses to save part of their pension, the capital involved is included in the means test in the same way as savings from any other source. However, when means disregards are taken into account a single person who has no other means can have capital (e.g. savings) of up to €40,999 and qualify for the maximum rate of pension. A single person can have a capital balance of up to €93,999 and still qualify for a reduced pension. These amounts are doubled in the case of a married couple.

The department is committed to delivering a quality customer service and in this regard pensioners are provided with full and clear information on their entitlements and on their obligations. This includes providing them with detailed information on the income that is taken into account in the means test. However, it is not intended that this should deter pensioners from saving and given the levels of capital disregards in place it should be noted that most pensioners are not at risk of having their entitlement reduced as a result of making savings from their weekly pension.