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Dáil Éireann debate -
Wednesday, 8 Nov 2000

Vol. 525 No. 3

Written Answers. - Social Welfare Payments.

Noel Ahern

Question:

388 Mr. N. Ahern asked the Minister for Social, Community and Family Affairs the differences in conditions for non-contributory and contributory old age pensions; if regulations vary in relation to payment when outside the State for a few months; if the regulations for non contributory pensions are generally more restrictive; if he will change the terms as some people resent the term of non-contributory which they equate to spongers when if fact they might have ten years paid contributions; if he will allow the use of the term contributory or introduce a new term where appropriate; and if he will make a statement on the matter. [25231/00]

Entitlement to an old age non-contributory pension is subject to a means test. Items which count as means include cash income, the value of any property, excluding the person's own home, and the value of any investments and capital which a person may have. The pension is subject to periodic means review and there is an obligation on recipients to inform my Department of any change in means.

Means tested payments are not paid for extended periods to people who are resident outside the state. Old age non-contributory pen sioners who intend leaving the State must inform my Department in advance. On return, a backdated payment of up to 13 weeks will be made once my Department is notified. A payment will not be made for absences exceeding thirteen weeks unless there are exceptional circumstances involved, such as serious illness. However, where a person who is in receipt of old age non-contributory pension, takes up residence in Northern Ireland, payment of pension may continue for a period up to five years or until the person receives an equivalent payment from the Northern Ireland authorities if earlier.
Entitlement to an old age contributory pension is based on insurance contributions, paid and credited, over a person's working life. A minimum number of full rate insurance contributions must be paid and a yearly average test must normally be satisfied. Contributory pensions are not subject to a means test and there are no restrictions on the payment of old age contributory pension while outside the State.
Where persons have entitlement to both a contributory and a non-contributory pension they are paid whichever is more favourable to them. Where a reduced rate of contributory pension is payable due to a deficiency in the persons contribution record, it is frequently the case that the non-contributory pension is more advantageous.
I am not aware of any particular difficulty or stigma associated with the present pension scheme titles, which solely convey the basis on which the various social insurance and assistance payments are derived.
In the particular case referred to by the Deputy, the person concerned qualified for an old age contributory pension at the weekly rate of £48.00 with effect from 5 May 2000 under the special provisions which I introduced this year to take account of pre-1953 national health insurance contributions for pension purposes. However she is currently receiving an old age non-contributory pension of £85.50 per week and the half-rate old age contributory pension cannot be paid in addition. The person concerned is financially better off to remain on old age non-contributory pension.
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