Bernard Durkan (Kildare North, Fine Gael)
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129. To ask the Minister for Social Protection the extent to which means test applies to applicants for old age pension and noncontributory old age pension; the extent to which the value of savings, assets including capital affects such applications; and if she will make a statement on the matter. [22116/13]

Joan Burton (Dublin West, Labour)
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The personal rate of State pension contributory is a non means-tested payment based on PRSI contributions paid to the Social Insurance Fund over a working life. To qualify a person needs to:

- enter insurable employment by age 55 for State Pension (transition) and age 56 for State Pension (contributory),

- have paid 520 full rate social insurance contributions

- have a yearly average contributions of at least 10 for State pension (contributory), and at least 24 for State pension (transition).

The yearly average determines the weekly rate of payment.

An increase in the State pension for a spouse or partner (qualified adult) can be paid. This element of the State pension is means tested. Any income the qualified adult has from employment, self-employment, savings, investments and capital (for example, any property except the person’s home) is taken into account. Where there is joint savings or investments with the spouse or partner, half of that amount is taken into account. An increase for a qualified adult may be payable if the qualified adult has weekly income of less than €310. There are currently approximately 2,500 State pension transition customers and approximately 68,000 State pension contributory customers who have been awarded an increase for a qualified adult.

Where a person does not meet the qualifying conditions for State pension contributory, they may apply for the means-tested State pension non-contributory. The means test for State pension non-contributory takes into account the income and assets of both the claimant and his or her spouse or partner. Capital, property (excluding a person's home), savings and investments are assessed as capital and a formula is then used to assess the weekly means from capital. The weekly rate payable depends on the total weekly means of the person or couple.

The formula for assessing means from capital is as follows:

There are currently approximately 95,000 customers in receipt of State pension non-contributory.