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Dáil

Written answer

State Pensions

457. Deputy Seán Kyne asked the Minister for Social Protection if he is aware of the concerns of some members of an organisation (details supplied), who do not qualify for the State Pension (contributory); the impact this has on being excluded from social welfare schemes such as living alone allowance, over-80 allowance, Christmas bonus, dental and optical benefits, additional qualified adult allowance, household benefits package between ages 66 and 70 and treatment for the Universal Social Charge amongst other schemes; and if he will make a statement on the matter. [52958/26]

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Dara Calleary Minister for Social Protection Fianna Fáil

Primary weekly social welfare payments are intended to enable recipients to meet their basic day-to-day income needs.  In addition to these primary payments, my Department also provides a range of other payments on a weekly, monthly, or less frequent basis.  These payments are considered secondary in nature with each of them having their own individual qualifying criteria.

The Living Alone Increase  is one of those secondary payments.  It is not a scheme or a stand-alone payment, but it is a supplement to a primary social protection payment of €22 per week made to people aged 66 years or over, who are in receipt of certain social welfare payments and who are living alone.

For those aged 66 or over, payments eligible for the Living Alone Increase include State Pension (Contributory), State Pension (Non-contributory), Bereaved Partner’s (Contributory) Pension, Bereaved Partner's Pension under the Occupational Injuries Benefit Scheme, Incapacity Supplement under the Occupational Injuries Benefit Scheme and Deserted Wife's Benefit.  The Living Alone Increase is also paid to people aged under 66 who live alone and are in receipt of Disability Allowance, Invalidity Pension, Incapacity Supplement or Blind Pension.

Prior to 6 April 1995, civil and public servants did not have access to the full range of social insurance benefits as their terms of employment protected them against the main contingencies of illness and old age, and the risk of unemployment was not considered a factor due to the nature of their employment.

Consequently, such contributors pay less in social insurance contributions in return for fewer social insurance benefits.  For example, class B contributors currently pay a contribution at the rate of 1.1% on their weekly earnings up to €1,443 and 4.2% on weekly earnings over that amount and their employers pay a contribution of 2.21% on all employee earnings.  Class B contributors are currently entitled to Bereaved Partner’s (Contributory) Pension, Guardian's Payment (Contributory), (limited) Occupational Injuries Benefits, Parent's Benefit and Carer's Benefit. Class B, C and D contributions do not provide entitlement to the State Pension (Contributory), except in certain circumstances where, in conjunction with qualifying contributions, they can be used when calculating entitlement to a mixed-insurance pro-rata pension.  A retired public or civil servant who is in receipt of an occupational pension and no primary payment from my Department does not qualify for the Living Alone Increase.

Contributions paid at Class B, C and D do not provide access to the Treatment Benefit scheme, which includes dental and optical benefits.

Civil and public servants recruited from 6 April 1995, and those employed in the private sector, pay a class A social insurance contribution of 4.2% on their weekly earnings.  Their employers pay a contribution of 9.0% where employees’ weekly earnings are €552 or less and 11.25% where their employees’ weekly earnings exceed €552.  Class A contributors have access to the full range of social insurance benefits, including State Pension (Contributory).  However, the value of the State Pension (Contributory) is integrated with their public service pension (in the case of those recruited after 6 April 1995 and before 1 January 2013), unlike those pre-April 1995 civil and public servants who receive their full pension entitlement under their public service pension.

Retired public servants can still qualify for a Living Alone Increase if they are in receipt of a relevant payment.  For example, Class B, C and D contributors can qualify for a Bereaved Partner’s (Contributory) Pension where they experience the loss of a spouse or partner.  This is a qualifying payment for the Living Alone Increase.

The State Pension (Non-contributory) is available to those who satisfy the means-test and who are ordinarily resident in the State, regardless of their social insurance contribution history.  The State Pension (Non-contributory) is a qualifying payment for the Living Alone Increase, regardless of the rate of payment.

There are no circumstances where the Living Alone Increase can be paid to people who are not in receipt of a primary qualifying payment from my Department or who do not meet the living alone eligibility criteria.  Similarly, the over-80 allowance, bonus payments, and an increase for a qualified adult (IQA) are only payable in addition to a relevant primary payment.  Any change to the qualifying criteria for these payments would have to be considered in an overall policy and budgetary context.

Access to other benefits available from my Department, that are not dependent on receipt of a primary payment, or are available subject to satisfying a means test or reaching a specified age, may be available to class B, C, or D contributors, provided the underlying conditionality is met.  These include the Fuel Allowance, the Household Benefits Package and the Free Travel Scheme.  All persons over the age of 70 can receive the Household Benefits Package, with one package provided per household.  There is no requirement that a person must be in receipt of a pension from my Department.  A former public servant can qualify for the Household Benefits Package when aged between 66 and 69 subject to certain qualifying conditions and satisfying a means test.

The Universal Social Charge is administered through the Revenue Commissioners and any questions in relation to how occupational pensions for retired public and civil servants are taxed should be directed to my colleague, the Minister for Finance.

I trust this clarifies the matter for the Deputy.

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