Written answers

Tuesday, 30 November 2021

Department of Employment Affairs and Social Protection

Pension Provisions

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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388. To ask the Minister for Employment Affairs and Social Protection the amount a recipient of a State pension contributory or non-contributory pension can earn without affecting their pension payment. [58471/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Department provides income supports through contributory payments (which are based on a person's social insurance record) and means-tested social assistance payments. Social welfare legislation provides that the means test takes account of the income and assets of the person (and spouse or partner, if applicable) applying for the relevant scheme.

The State Pension Contributory (SPC) is a contributory payment and, as such, is not means tested. A recipient of the SPC can claim an increase to their pension in respect of a qualified adult (IQA). A qualified adult is the spouse / partner of the pensioner who is being wholly or mainly maintained by the pensioner.

An increase for a qualified adult may be payable at the maximum rate of payment where the means of the spouse/partner are €100 a week or less, while reduced rates are payable where the means are over €100 and less than €310 per week. No increase is payable where the means of the spouse/partner are in excess of €310 per week.

The State Pension Non-Contributory (SPNC) is a means-tested payment for people aged 66 or over who do not qualify for the SPC based on their social insurance record.

As such, all recipients of the SPNC are subject to a means test. Social welfare legislation provides that all income and capital belonging to an applicant (and his or her spouse/partner, where applicable) is assessable for means testing purposes for social assistance schemes, such as the State Pension Non-Contributory (SPNC). This includes all income and property (other than the family home) belonging to the claimant.

To calculate the rate payable, the means of the claimant is deducted from the maximum rate of SPNC. In cases where the means of the claimant exceed the maximum rate, the claimant is not entitled to any payment.

SPNC recipients can earn up to €200 per week from employment without their rate of payment being affected. In addition, the first €30 of means from any source is also disregarded.

I trust that this clarifies the issue..

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