Dáil Éireann Debate, Wednesday - 17 June 2015
63. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection the rules governing the ability of a person in receipt of the State pension (contributory) or the State pension (non-contributory) to take up paid employment; and if she will make a statement on the matter. [24114/15]
View answerEncouraging longer working is part of the strategy to address the issue of sustainability of the State pension. People in receipt of the State pension may also engage in paid employment.
There is no means test for the State pension (contributory), and so the personal rate applicable in respect of such a pension is not reduced by paid employment.
The State pension (non-contributory) is means tested and takes into account both the income and assets of the claimant and his or her spouse or partner. For this purpose, a formula is applied to the value of all applicable assets to determine a weekly means. The weekly rate payable depends on the total weekly means, from both income and assets, of the person or couple. The first €30 of means is disregarded as part of the means test.
The Deputy may also wish to note that there is no statutory retirement age in Ireland. Responsibility for setting retirement age is a matter for the employer/employee relationship and the contract of employment. As a result, people can retire before or after State pension age. It is hoped that, where appropriate, workers will choose and be able to work to pension age (and beyond if that is their desire) and in such cases they will have a higher income than they would have from their pension alone.
