State Pension (Non-Contributory) is a means-tested payment for people aged 66 and over, habitually residing in the State, who do not qualify for a state pension contributory, or who only qualify for a reduced rate contributory pension based on their social insurance record. For the purposes of the means-test, from application stage through the lifetime of a claim, an applicant must provide full and up to date details of any income(s), asset(s), savings and investment(s) held, including any changes that occur.
Social welfare legislation provides that means tests take account of the income and assets of the person (and their spouse or partner, if applicable) applying for the relevant scheme. The means assessment includes income from sources such as employment, self-employment, occupational pensions and maintenance payments. It also includes property owned, other than the family home, and capital such as savings, shares, and other investments. Income earned under the rent-a-room tax relief scheme is exempt from the means test.
An applicant can have savings or assets of up to €20,000 and earnings of up to €200 per week from paid employment and still qualify for a full State Pension (Non-Contributory). The first €30 per week of means does not affect the rate of the pension. After that first €30, your pension is reduced by €2.50 for every €2.50 of means. If a person’s assessed weekly means is over €292.51, they will not be eligible to receive a State Pension (Non-Contributory) Pension.
If a person is farming or leasing their land, the net income is assessed in the means test. The net income is worked out by taking the gross income (ie. income before tax, and deducting any relevant expenses). If a person owns land that is not productively used or leased, the Department assesses it on its capital value instead. However, this may not apply in the case of certain family settlements involving the transfer of ownership of a farm.
I trust this clarifies the matter for the Deputy.
