Dáil Éireann Debate, Wednesday - 2 June 2021
173. Deputy Michael Creed asked the Minister for Social Protection the details of the criteria in circumstances in which a person is in receipt of the State pension (contributory) and claiming for an increase for an adult dependant. [30195/21]
View answerThere are a number of payments and pensions paid by the Department to people over State pension age. One of these is the State pension (contributory), qualification for which is based on a number of criteria, including that a minimum of 520 qualifying social insurance contributions have been paid. People who have not made such contributions are generally paid alternative payments. It should be noted having 520 paid contributions alone does not qualify a person for a maximum rate pension. Comprehensive details on qualification criteria are available on the Department's website at https://www.gov.ie/en/service/e6f908-state-pension-contributory/
Once fulfilment of those conditions is achieved, there are a number of additional payments that may be available to recipients in certain circumstances. One such payment is the increase for qualified adult which is payable once the financially dependent adult satisfies a means test. It is normally paid where the qualified adult does not have enough contributions to claim a pension in their own right and it is usually paid on the basis of the contribution history of the primary pension recipient. Comprehensive details on this increase are also available on the Department's website at www.gov.ie/en/service/a2ae6f-increase-for-a-qualified-adult/.
In an effort to improve the position of the Qualified Adults of pensioners in receipt of the State pension, changes were made over time to allow for it to be paid directly to the Qualified Adult. The stated rationale for this at the time was to transform the payment into what is in effect a payment that would be paid directly to the Qualified Adult in their own right as distinct for being a dependant of their spouse.
An increase for qualified adult is also payable on non-contributory State pension where the qualified adult is under 66 years of age and satisfies a means test. The means test for State pension non-contributory takes into account the income and assets of both the claimant and his or her spouse or partner. Capital, property (excluding a person's home), savings and investments are assessed as capital and a formula is then used to assess the weekly means from capital. The weekly rate payable depends on the total weekly means of the person or couple.
State pension (non-contributory) differs fundamentally from contributory payments in its design. It is intended to support people in Ireland who have an income need, and to ensure they do not experience poverty in their old age, even if they did not pay significant PRSI while working or make other private provision for retirement. State pension (contributory) by contrast is an entitlement built up through PRSI contributions, and is not impacted upon by the means of the pensioner, nor their residence.
I hope this clarifies the matter for the Deputy.
