Terence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context

Question 202: To ask the Minister for Social Protection if he will deal with a matter (details supplied) regarding pensions; and if he will make a statement on the matter. [47043/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

I understand that the Deputy has clarified that he is referring to State pensions.

There are three types of State pension:- State pension (transition), State pension (contributory) and State pension (non-contributory). Both State pension (transition) and State pension (contributory) are among a number of social welfare schemes based upon social insurance. Payments based on social insurance contributions are funded through pay-related contributions to the social insurance fund by employers, employees and the self-employed with subvention, where necessary, by the State. In the case of contributory pensions, payment is made on reaching pension age provided the qualifying conditions, which include having paid a minimum number of contributions at an appropriate rate and reaching a minimum average annual contribution rate, have been met. There are no residency conditions attached to contributory payments as the pensioner has built up an entitlement based on contributions paid over his/her working life.

The State pension (non-contributory) is a means-tested payment for persons over 66 years of age and is funded entirely by taxation. All income is assessable as means and this includes cash income, private pensions, foreign pensions, the value of any property (excluding the claimant's own home) and the value of any investments, monies held in financial institutions and capital which the claimant or their spouse may have. A person seeking the payment must also be habitually resident in the State.

The current Government policy in relation to pensions is laid out in the National Pensions Framework which was launched in March of this year. The framework includes a number of changes to the State pension in order to make it more transparent, simple and equitable for those reaching pension age. Among the changes outlined are changes to the social insurance conditions and increases to the State pension age however there are no plans to alter the residency requirements or reduce the pensions of those who are non-residents.