Written answers

Tuesday, 7 March 2017

Department of Social Protection

Jobseeker's Allowance Eligibility

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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342. To ask the Minister for Social Protection his plans to amend eligibility criteria for jobseeker's allowance; in regard to a person who has invested in a private pension fund and is out of work and wishes to retain the investment for pension purposes, if such investment fund will be excluded from means assessment for jobseeker's allowance in view of the fact the person wishes to safeguard the private pension plan due to future limited entitlement to a State pension; and if he will make a statement on the matter. [11980/17]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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My Department operates a range of means-tested social assistance schemes, where account is taken of the income and the value of capital, including shares, of the claimant and his or her spouse/ partner.

When assessing a claimant’s (or the claimant’s spouse/partner’s) income from earnings, social welfare legislation provides for various payments to be deducted from gross earnings for means assessment purposes including: PRSI contributions, payments to a trade union, and superannuation contributions, such as additional voluntary contributions (AVCs) and personal retirement savings accounts (PRSAs). Payments made in respect of life assurance policies, including mortgage protection policies, are not deducted from earnings for means assessment purposes.

With regards to property and capital, social welfare legislation provides that the yearly value of property (including capital) owned but not personally used or enjoyed is assessable for means testing purposes. Such property includes all monies held in financial institutions or otherwise, the market value of shares as well as houses and premises owned by a claimant which may or may not be put to commercial use. However, it does not include property such as the family home a person is personally using or enjoying i.e. residing in or, for example, a premises used by the claimant in carrying out a business.

The assessment formula for most schemes, including Jobseeker’s Allowance, is outlined in the following table. This formula applies regardless of the type of capital (including monies held in financial institutions or otherwise, the market value of shares or property).

AMOUNT OF CAPITALWEEKLY MEANS ASSESSED
Up to €20,000Nil
€20,000 - €30,000€1 per each €1,000
€30,000 - €40,000€2 per each €1,000
Over €40,000€4 per each €1,000

The general rule for assessment of pension funds or annuities is:

-Regular pension payments are treated as income for means purposes;

- The value of any cash otherwise available from a pension fund is assessed on the basis of the capital valuation of that fund; and

-Money invested in a pension fund is not assessable if it is not accessible to the claimant. However, this must specifically be a pension fund, and not a general savings account being used by the claimant as savings for their retirement.

I hope this clarifies the matter for the Deputy.

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