Pension Provisions

Dáil Éireann Debate, Tuesday - 16 April 2019

Tuesday, 16 April 2019

Ceisteanna (549)

Catherine Murphy

Ceist:

549. Deputy Catherine Murphy asked the Minister for Employment Affairs and Social Protection the way in which the assessment of PRSA pension is assessed as means for an applicant to the scheme in cases in which the pension is not available to be drawn down until the person reaches pension age; the way in which that person is expected to manage financially in cases in which the pension is deducted as means; and if she will make a statement on the matter. [17785/19]

Freagraí scríofa

Minister for Employment Affairs and Social Protection

In assessing claims for means tested social welfare schemes, account is taken of the income and the value of capital, including shares, of the claimant and his or her spouse/partner.

The general rule for assessment of pension funds or annuities is that money invested in a pension fund is not assessable for means purposes if it is not accessible to the claimant.  However, this must specifically be a pension fund, and not a general savings account being used by the claimant as savings for their retirement.  For PRSA pensions, so long as the pension remains inaccessible to the claimant, it is not assessable as means.

The value of any cash otherwise available from a pension fund is assessed on the basis of the capital valuation of that fund and any regular pension payments received are treated as income for means purposes.

I hope this clarifies the matter for the Deputy.