Eamon Scanlon (Sligo-Leitrim, Fianna Fail)
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102. To ask the Minister for Social Protection his plans to address the inequality experienced by persons that fall short of the number of PRSI contributions to qualify for a full State pension and are then refused the non-contributory State pension based on their spouse’s income; when he will address this inequality; and if he will make a statement on the matter. [37845/16]

Leo Varadkar (Dublin West, Fine Gael)
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The State Pension Contributory (SPC) is a social insurance payment. Entitlement is based on 520 PRSI contributions having being paid since first starting work and the rate payable is based on the average yearly number of PRSI contributions made over a working life. A person who does not qualify for the full rate of SPC would generally qualify for a reduced rate of payment of SPC. It should be noted that people with a yearly average number of PRSI contribution of 40 or more will qualify for a weekly rate of SPC which is in excess of the weekly maximum rate of the equivalent social assistance payment – the State Pension Non-Contributory (SPNC).

The latter payment is one of a range of means tested social assistance payments. The means test takes account of the income and assets of the person and any spouse/partner, if applicable. Income and assets include income from employment, self-employment, occupational pensions, maintenance payments as well as property owned (other than the family home) and capital such as savings, shares and other investments.

For the State Pension Non-Contributory, the means of the claimant are taken to be one-half of the means of the couple.

The purpose of the means test is to ensure those individuals and couples with limited or no income or assets receive the most support from the State, while those with higher levels of income or assets provide for their own needs to a greater extent. It is in the nature of means tested schemes that there is no entitlement to a payment once the means of an individual or couple exceed a given amount. Finally, where one of a couple is entitled to a SPC, an increase may be payable in respect of a spouse or partner who has income of less than €310 per week. Any such increase is paid directly to the spouse or partner.