Contributory State pension - query re dependent qualified adult (PRSA fund)

johnfenit

Registered User
Messages
10
hello,

I will be applying shortly for the state contributory pension. My wife has no A1 stamps and a public sector pension of c€200 per week. Apart from joint home ownership and savings of €19,000, she has no other assets. No joint bank account with me.

Her application for adult dependent state pension will obviously be means tested and any entitlement will be based on my yearly average contributions and further rebated by her existing pension.

My query: my wife has a PRSA untouched and she has no plans to activate or draw cash from it. Will Social Welfare factor the PRSA into their calculation?

Thanks

John
 

Hooverfish

Registered User
Messages
94
Is she entitled to income from the PRSA if she chose it, at the moment?
The means test will factor in the whole household, not just your wife's income, I'm afraid.
 

lughildanach

Registered User
Messages
119
As it is a contributory pension, the claimant's income is not means tested. It is only the spouse's income that is means tested, to determine how much of an increase (if any) is paid on top of the pension. The rate payable on a contributory pension is calculated by reference to SW 19 document https://www.gov.ie/en/publication/6aec4d-current-rates-of-payment-for-social-welfare-payments-sw19/

Page 81 is the page that is relevant here. It shows that if the spouse has an income of 200 Euro per week, and is under 66 years old, the increase payable on the pension is 95.40. PLease note that this is the rate if the main claimant is getting the full personal rate of pension. The pages following this give the rates for those receiving reduced rate pensions.

The spouse's savings (their own savings plus half of joint savings) are also assessed, but only once their share is over 20k, so that doesn't seem to apply here.
 

Conan

Frequent Poster
Messages
1,089
Is she entitled to income from the PRSA if she chose it, at the moment?
The means test will factor in the whole household, not just your wife's income, I'm afraid.
Not true.
The qualified Adult Dependents Pension is based on the means of the "dependant". Family home is ignored. If her income is less than €100pw then she qualifies for full pension. If earning over €310pw she is not entitled to any pension. But the savings and PRSA will also be taken into account. The €19,000 will be equated to c€30pw in income (giving a total income of €230) , so it depends on the value of the PRSA as to whether she will qualify for a reduced Dependents Pension.
 

lughildanach

Registered User
Messages
119
Not true.
The qualified Adult Dependents Pension is based on the means of the "dependant". Family home is ignored. If her income is less than €100pw then she qualifies for full pension. If earning over €310pw she is not entitled to any pension. But the savings and PRSA will also be taken into account. The €19,000 will be equated to c€30pw in income (giving a total income of €230) , so it depends on the value of the PRSA as to whether she will qualify for a reduced Dependents Pension.
The 19k will not result in any deduction. The first 20k is disregarded.
 

lughildanach

Registered User
Messages
119
Regarding the PRSA, this may be assessable. The question is whether it can be accessed at this time (whether she choses to access it or not).

If it can be accessed, but isn't, it can be assessed as capital. See the above link for how capital is assessed (basically first 20k is disregarded, next 10k is assessed at 1 euro/1000, next 10k is assessed at 2/1000 and balance at 4/1000.

If it in a periodic payment, the amount of the periodic payment will be assessed.

There may be room to argue that it should be assessed at a different rate, if you can show that the value of the PRSA is less than what they are assessing.

If it can't be accessed, then it will not be assessed.
 
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Hooverfish

Registered User
Messages
94
Right ,well I'll appeal my recent refusal of qualified adult, then. I think you guys are wrong unfortunately - it is the whole household that is means tested. I wish you were right...
 

Conan

Frequent Poster
Messages
1,089
Right ,well I'll appeal my recent refusal of qualified adult, then. I think you guys are wrong unfortunately - it is the whole household that is means tested. I wish you were right...
Definitely not wrong. The Additional Qualified Adult Dependants Pension is means tested, but ONLY ON THE MEANS OF THE DEPENDANT. Assets in joint names (other than family home) are treated as divided 50/50.
 
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johnfenit

Registered User
Messages
10
my thanks to everyone, the nub is how they assess the PRSA (uncashed). she could reduce her savings significantly.

I might hit Welfare.ie with an FOI request to be doubly sure.

again many thanks
 

lughildanach

Registered User
Messages
119
Right ,well I'll appeal my recent refusal of qualified adult, then. I think you guys are wrong unfortunately - it is the whole household that is means tested. I wish you were right...
Did you apply for Contributory pension? Contributory pensions for the main claimant are most certainly not means tested. If you applied for Non-Contributory pension, then the means of the couple are considered jointly.
 
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