Non contributory pension/savings question

[John 1982]

So a family friend's partner passed away and they are now quite worried as they have just seen their partner has €100k approx in a bank account.
It appears they were receiving the full pension & did not indicate they had savings.

Now the partner is disclosing the information & is quite worried their own pension will be "taken off them".

I was trying to figure out the calculations for them but wasn't sure. The first €20k of savings isn't means tested so how is the rest calculated?

Thanks for any information.

 

[Marsupial]

So a family friend's partner passed away and they are now quite worried as they have just seen their partner has €100k approx in a bank account.
It appears they were receiving the full pension & did not indicate they had savings.

Now the partner is disclosing the information & is quite worried their own pension will be "taken off them".

I was trying to figure out the calculations for them but wasn't sure. The first €20k of savings isn't means tested so how is the rest calculated?

Thanks for any information.

First 20K - disregarded
Next 10K - pension reduced by €1 per 1K
Next 10K - pension reduced by €2 per 1K
balance (60k): - pension reduced by €4 per 1K

So for undisclosed savings of 100K, the weekly n-c pension should have been reduced by €[10+20+(4*60)] a week. A reduction totalling €270 which exceeds the value of the weekly NC pension! I assume that the Department will pursue the deceased's executor for any overpayment as it is statutorily obliged to.

As for the partner losing their own pension, that would depend on what pension they'll be claiming and where the €100k goes.

What sort of pension is the partner claiming? And what sort of pension were they claiming before?

 

[ClubMan]

So a family friend's partner passed away and they are now quite worried as they have just seen their partner has €100k approx in a bank account.
It appears they were receiving the full pension & did not indicate they had savings.

Now the partner is disclosing the information & is quite worried their own pension will be "taken off them".

I was trying to figure out the calculations for them but wasn't sure. The first €20k of savings isn't means tested so how is the rest calculated?

Thanks for any information.

This is a bit confusing.
Were the couple married?
Were they cohabiting?
Who was the €100k left to in the will (if any)?
What do you mean by "the partner is disclosing the information"?
To whom?
And, as mentioned above, what sort of pension is the surviving partner receiving?

 

[John 1982]

First 20K - disregarded
Next 10K - pension reduced by €1 per 1K
Next 10K - pension reduced by €2 per 1K
balance (60k): - pension reduced by €4 per 1K

So for undisclosed savings of 100K, the weekly n-c pension should have been reduced by €[10+20+(4*60)] a week. A reduction totalling €270 which exceeds the value of the weekly NC pension! I assume that the Department will pursue the deceased's executor for any overpayment as it is statutorily obliged to.

As for the partner losing their own pension, that would depend on what pension they'll be claiming and where the €100k goes.

What sort of pension is the partner claiming? And what sort of pension were they claiming before?

Thanks. Yes to me it appears what the deceased overpayment was will be taken from estate. So if he had 100k savings not declared over 15 years it will mean a significant deduction.

Wife has a non contributory pension too. Soo much hassle and worry left for her over the husband not declaring savings. Foolish.

 

[gipimann]

Is the wife on her own non-con pension, or was she receiving the qualified adult amount of her late husband's pension?
If she was assessed in her own right, the undeclared savings should have been assessed against both non-con pensions, not just the late husband's pension.
The means would have been calculated as outlined above, then assigned 50-50.

State Pension (Non-Contributory)

The State Pension (Non-Contributory) previously called the Old Age Non-Contributory Pension is a means-tested payment available to people in Ireland aged 66 and over.

www.citizensinformation.ie

 

[Marsupial]

Is the wife on her own non-con pension, or was she receiving the qualified adult amount of her late husband's pension?
If she was assessed in her own right, the undeclared savings should have been assessed against both non-con pensions, not just the late husband's pension.
The means would have been calculated as outlined above, then assigned 50-50.

State Pension (Non-Contributory)

The State Pension (Non-Contributory) previously called the Old Age Non-Contributory Pension is a means-tested payment available to people in Ireland aged 66 and over.

www.citizensinformation.ie

Good point! So if she wasn't getting the qualified adult pension then presumably that's the means test that the Department will now do retrospectively.

So each of them will probably be assessed as having had weekly income of €70, meaning that their weekly pension should have been €202 rather than €242 (2022 rate). Thus each of them will be liable to repay €40 per week for every week that they received the full n-c pension.