Dáil Éireann Debate, Thursday - 19 September 2013
104. Deputy Dara Murphy asked the Minister for Social Protection if a person is entitled to switch from a contributory pension to a higher rate on the non-contributory pension; her views on whether it is fair that this pay difference exists; and if she will make a statement on the matter. [38952/13]
View answerIn cases where a person does not meet the qualifying conditions for State pension (contributory) or qualifies for a reduced rate of State pension (contributory), they may apply for the means-tested State pension (non-contributory). The means test for State pension (non-contributory) assesses the income and assets of both the claimant and his or her spouse or partner. Where the State pension (non-contributory) is higher than the State pension (contributory), the higher of the determined pension entitlement may be awarded. A claimant may wish to apply to transfer from the State pension (contributory) to the higher rate of (non-contributory) pension if this is the case. Where claimants wish to apply for both pensions, the Department will award the higher pension.
In terms of fairness, my Department provides a safety net for those who do not qualify for schemes as a result of their contribution history. The non-contributory state pensions falls into this category and it has to be borne in mind that this pension is a means-tested payment and differs substantially in qualifying conditions from the contributory pension, which is based on the number of social insurance contributions made and is linked to the person's employment record.
