State pensions account for the single largest block of social welfare expenditure, and while expenditure on pensions is increasing because of demographic pressures, this is being successfully managed within the overall welfare budget. This year, the Department of Social Protection will spend an estimated €6.675 billion on pensions – 34.4% of all welfare expenditure and an increase of €168 million over 2014.
Eligibility for State Pension Non-Contributory is means tested and 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, occupational pension, a British or other foreign pension, 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. The first 30 euro of means is disregarded for State Pension Non-Contributory.
The Deputy may wish to note where an applicant has also been insurably employed in another EU Member State, or in a country with which Ireland has a bilateral social security agreement, their insured periods in those countries may be combined with their Irish insurance to assess their entitlement to a pro-rata State pension (contributory). In addition to the general provisions under EU legislation (which apply to all EU Member States, EEA States; Norway, Iceland and Liechtenstein, and to Switzerland), Ireland has bilateral agreements with the UK which also cover the Channel Islands and the Isle of Man, USA, Australia, Canada, Quebec (which has a separate system from the rest of Canada), New Zealand, Japan, and the Republic of Korea. EU legislation and bilateral agreements provide that comparative pension assessments (for standard-rate State pension contributory under Irish legislation alone, and for pro-rata State pension contributory under EU or bilateral agreement provisions) be undertaken, and whichever is the most financially beneficial pension entitlement for that pensioner is awarded. As the State pension (contributory) is not means-tested, the rate of such a pension would not be reduced as a result of private pension provision.
It may be of interest that, in the case of Carer's Allowance, where the carer receives a social welfare payment from another State, an amount up the maximum rate of the Irish State Pension Contributory is exempt from the means test. Any foreign social welfare payment in excess of the maximum Irish State Pension Contributory is treated as income for the means test.
The overall concern of the Government in recent budgets has been to protect the primary weekly social welfare rates where possible. Maintaining the rate of the State pension and other core payments is critical in protecting people from poverty.
