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State Pension (Contributory) Eligibility

Dáil Éireann Debate, Tuesday - 15 October 2019

Tuesday, 15 October 2019

Questions (616)

Richard Boyd Barrett

Question:

616. Deputy Richard Boyd Barrett asked the Minister for Employment Affairs and Social Protection the reason means tested qualified adult payments for those on a contributory pension treat savings as income to be assessed which can result in the loss of the payment when at the same time persons are encouraged by the Government to save for their old age; and if she will make a statement on the matter. [42143/19]

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Written answers

TA recipient of the State Pension (Contributory) can claim an increase of pension in respect of a Qualified Adult. A Qualified Adult is the spouse/partner of the pensioner who is being wholly or mainly maintained by the pensioner.

An increase is payable at the maximum rate of payment where the means of the spouse/partner is €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 means assessed are those of the spouse/partner only and include;

- Income from employment and self-employment;

- Income from non-social welfare pensions;

- Rental income; and

- The capital value of property which is not let, as well as savings.

Means of the claimant are not included in the assessment and the family home is not assessed.

The assessment of capital of the Qualified Adult reflects the fact that there is an expectation that people with reasonable amounts of capital and property are in a position to use that capital or to realise the value of property to support themselves so resources can be directed towards those who need it most. 

Where, for example, a couple has a joint savings account, the value of half of the capital amount is assessed against the spouse/partner. This is done by reference to the following formula: the first €20,000 of capital is fully disregarded, the next €10,000 assessed at €1 per thousand, the next €10,000 assessed at €2 per thousand, with the remainder assessed at €4 per thousand. 

This means that, assuming no other means, a spouse/partner can have capital of up to €57,500 without affecting entitlement to a Qualified Adult increase payable at the maximum weekly rate. Tapered reduced rates of Qualified Adult increase can continue to be payable where the spouse/partner has capital of up to €110,000.   

It should be noted that the value of the family home, regardless of who is the legal owner, is never taken into account in this assessment.

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