Bríd Smith (Dublin South Central, People Before Profit Alliance)
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491. To ask the Minister for Employment Affairs and Social Protection if an applicant will automatically receive the greater of the two pensions in circumstances in which they received the details of their entitlements to both a non-contributory and contributory pension; and if they must specify which pension they will to avail of (details supplied). [13883/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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State pension (contributory) is a social insurance payment made to people at pension age, who satisfy certain social insurance contribution conditions. Pension entitlement is assessed on the basis of the eligibility conditions applicable on the date an individual reaches pension age. Factors such as an individual’s social insurance record, their attachment to the workforce, and their countries of employment affect the rate of pension entitlement.

State pension (non-contributory) is a means-tested, residency-based payment for people of pension age. Social welfare legislation provides that the means test takes account of the income and assets of the applicant (and spouse/civil partner/cohabitant). 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.

If a person applies for both of these pensions, their eligibility and rate of pension entitlement is determined based on the qualifying conditions of the respective schemes. Where an applicant qualifies for both pensions, they are paid whichever pension is more financially beneficial to them, since both schemes cannot be paid concurrently.

I hope this clarifies the matter for the Deputy.