State Pension (non-contributary)

wak11935

My wife was a Civil Servant but had to leave work aged 25 to get married.
She got her contributions back (at the time it was called a gratuity).
She will be 66 next birthday.
Is she entitled to a State Non-Contributary Pension?
If so, will it be means tested and take my job pension into account?

The_Conductor

wak11935 wrote: »

My wife was a Civil Servant but had to leave work aged 25 to get married.
She got her contributions back (at the time it was called a gratuity).
She will be 66 next birthday.
Is she entitled to a State Non-Contributary Pension?
If so, will it be means tested and take my job pension into account?

She would be entitled to a means tested non-contributory state pension.
Yes, it would be means tested, and yes, your pension and any other household income would be taken into account.

wak11935

smccarrick wrote: »

She would be entitled to a means tested non-contributory state pension.
Yes, it would be means tested, and yes, your pension and any other household income would be taken into account.

Many thanks for your answer.
Does that mean that if the household income is above a certain amount she may not get anything?

The_Conductor

wak11935 wrote: »

Many thanks for your answer.
Does that mean that if the household income is above a certain amount she may not get anything?

Correct.
Eligibility for a non-contributory state pension would be means tested on the household income.

wak11935

smccarrick wrote: »

Correct.
Eligibility for a non-contributory state pension would be means tested on the household income.

Thanks for your help.
Do you know if there is a published sliding scale of pension/household income?

The_Conductor

wak11935 wrote: »

Thanks for your help.
Do you know if there is a published sliding scale of pension/household income?

This may help: http://www.citizensinformation.ie/categories/social-welfare/social-welfare-payments/older-and-retired-people/oap_non_contributory

In short-

The max non-contributory state pension is EUR219 per week, providing you are under 80 years of age (when it rises to 229)

The first EUR30 per week is not considered, but every EUR2.50 thereafter reduces the pension by a commensurate amount.

In the case of a married couple- the gross household income is considered split equally between both parties- so for example- if you had a gross income of EUR400 a week- it would be split in 2- with EUR200 assigned to your wife- the first EUR30 would not count, reducing her income for reckonable purposes to EUR170 a week- which would entitle her to a means tested pension of 219-170 a week (aka EUR49 a week).

Hope this helps,

Shane

wak11935

smccarrick wrote: »

This may help: http://www.citizensinformation.ie/categories/social-welfare/social-welfare-payments/older-and-retired-people/oap_non_contributory

In short-

The max non-contributory state pension is EUR219 per week, providing you are under 80 years of age (when it rises to 229)

The first EUR30 per week is not considered, but every EUR2.50 thereafter reduces the pension by a commensurate amount.

In the case of a married couple- the gross household income is considered split equally between both parties- so for example- if you had a gross income of EUR400 a week- it would be split in 2- with EUR200 assigned to your wife- the first EUR30 would not count, reducing her income for reckonable purposes to EUR170 a week- which would entitle her to a means tested pension of 219-170 a week (aka EUR49 a week).

Hope this helps,

Shane

Many thanks. That example explains it very well.

The_Conductor

Ps- when determining means- assets, other than the family home, are also taken into account (so if you had cash in the bank, shares, a holiday home etc- these would be considered as 'means' in a similar manner to a cash income.)

cee_jay

Are you getting a state contributory pension yourself?
Depending on your joint means, it may be better financially for you both if she goes as an Adult Dependent on your contributory pension.

wak11935

cAr0l wrote: »

Are you getting a state contributory pension yourself?
Depending on your joint means, it may be better financially for you both if she goes as an Adult Dependent on your contributory pension.

OK. Thanks. I will look into that.

Sidetracker

I receive a contributory old age pension, and I am still working. My Wife will qualify for non-contributory old age pension in April of this year. Can anyone tell me how her claim will be assessed or how much she will receive. I am retiring in June of this year

The_Conductor

Sidetracker wrote: »

I receive a contributory old age pension, and I am still working. My Wife will qualify for non-contributory old age pension in April of this year. Can anyone tell me how her claim will be assessed or how much she will receive. I am retiring in June of this year

The non-contributory pension is means tested- and assesment would be as per above.

I.e. Total household income is split equally between both spouses. Any assets other than the family home- are added to the equation. The gross amount of reckonable income is split in 2-

If the gross household income was determined to be EUR500 a week- EUR250 would be attributed to your wife, of which the first 30 does not count, leaving a reckonable income of EUR220 a week for your wife- which as its greater than the max allowable non-contrib state pension for her age group- means she would not qualify under the means test, for a non-contributory pension in her own right (you could apply to have an additional top-up to your contributory pension for an adult dependent though).

If the gross household income were EUR400 a week- 200 would be attributed to her, the first 30 is not counted, leaving EUR170- which would mean she would qualify for a payment of EUR49 a week (being the difference between the 219 and the reckonable income of 170 a week attributed to her).

If you are already claiming a contributory state pension- and have an alternate income stream (e.g. from fulltime or parttime work)- its highly probable that its not worth her while being means tested for the non-contributory state pension- that you'd be better off claiming her as an adult dependent.

Slideshowbob

if money is received from a private pension is that counted as means?

thanks

The_Conductor

Slideshowbob wrote: »

if money is received from a private pension is that counted as means?

thanks

Certainly it is. Depending on the level of pension received, it may be below the threshold- it most certainly would be considered as means however.

wak11935

smccarrick wrote: »

She would be entitled to a means tested non-contributory state pension.
Yes, it would be means tested, and yes, your pension and any other household income would be taken into account.

Thanks for the advice you gave me in Feb last year. Since then, of course I've done nothing, but as I'm now approaching 66 in March I'm applying for my Contributory State Pension. I did not realise that I should have applied for a Transition Pension before I was 65.
I will be claiming my wife as a Dependent as my private pension would be means tested and would leave her very little from her Non-Contributory State Pension.
My next question is whether I will continue paying PRSI on both my Private Pension and the Contributory State Pension?

wak

The_Conductor

Once you're over 66 you don't pay PRSI on either your occupational or your State contributory pension. Under 66- you do.

This thread might be of interest: http://www.askaboutmoney.com/showthread.php?t=46966