Relate October 2018 Volume 45: Issue 10 ISSN 0790-4290 Contents State Pension (Contributory) Reform of the pension system State Pension (Non-Contributory) Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension Taxation of pensions State pensions The National Pensions Framework 2010 was published in March 2010 and set out the Government’s plans for reform of the Irish pension system. Amongst the proposed reforms, it outlined plans to introduce (a) a Total Contributions Approach for the State Pension (Contributory) and (b) auto-enrolment for supplementary pensions. This policy was endorsed by a subsequent review of the Irish pensions system published by the OECD in 2013. In February 2018, the Government published A Roadmap for Pensions Reform 2018-2023, which focuses on implementing policy reforms based on these earlier documents. This issue of Relate describes current state pension provision in Ireland and outlines the main changes to the pension system set out in the Roadmap. It is intended that these changes will be introduced between now and 2028. Pension (Contributory) At present, the Pension (Contributory) is payable at age 66 to people who have enough social insurance contributions. It is not means tested and you may still earn other income from
Your home – If you vacate your home on a temporary or indefinite basis due to old age or incapacity, the value of the home itself will not be assessed as means. However, if you rent out your home, then the rental income you receive will be assessed as means. If you sell your home, the capital value of the house may be assessed as means. However, if you have been living in accommodation which no longer suits you or which you cannot maintain, you may be able to sell your home and move to a more suitable property without the sale affecting your weekly means. Certain conditions apply: Only proceeds of a sale up to €190,500 may be disregarded in circumstances. Additional proceeds over the €190,500 threshold are counted as means. The allowance only applies where you buy or rent alternative accommodation; or move into a private nursing home; or move in with the person caring for you (who receives a carer’s payment); or move to sheltered or special housing. If you sell part of your home under an equity release agreement, the disregard of €190,500 does not apply. Payment for dependants State Pension (Contributory) If you receive a State Pension (Contributory), you can get an increase in your payment for an adult dependant (called a qualified adult). Your income is not taken into account in this assessment. However, any income the qualified adult has from employment, self-employment, savings, investments and capital (for example, the value of any property they have, other than their own home) will affect the amount of increase. If you have joint savings or investments with your spouse or partner, only half is taken into account. In general, the Increase for a Qualified Adult is automatically paid directly to your adult dependant. You can also get an increase in your payment for child dependants (known as qualified children). However, you cannot claim an Increase for a Qualified Child (IQC) with your State Pension (Contributory) if your spouse or partner has an income of over €400 a week. You get a half-rate IQC if your spouse or partner earns between €310 and €400 a week.