Operational Guidelines: State Pension Non-contributory
From Department of Social Protection
Published on
Last updated on
From Department of Social Protection
Published on
Last updated on
State Pension Non-Contributory is a means-tested payment for people age 66 or over, who do not qualify for State Pension (Contributory) (SPC) on their record of social insurance contributions.
State Pension Non-Contributory was introduced with effect from the 29 September 2006 and replaced the Old Age Non-Contributory Pension.
The main legislative provisions relating to State Pension Non-Contributory are contained in
The scheme is administered by the Department of Employment Affairs and Social Protection.
To qualify for this pension, you must satisfy all of the following conditions i.e. you must
A means test is a way of checking if you have adequate means to support yourself and what amount of payment, if any, you may qualify for. Your means are any income belonging to you or your spouse or partner and property (except your own home) or an asset that could provide you with an income.
Provided you satisfy the other conditions of the scheme with regard to age, habitual residence in the State and the PPS number, you will qualify for State Pension Non-Contributory if your weekly means are at or below €262.50 Your weekly rate of payment will depend on the actual amount of your weekly means.
To determine your means, you must complete the application form in full. You must declare full details both of your own means and that of your spouse or partner where applicable. Incomplete application forms will be returned to the applicant and may ultimately delay the award of pension.
It is possible that the application may be referred to your local Social Welfare Inspector who will request an interview with you. You may be asked to produce supporting documentation such as bank statements or accounts.
If you are awarded a pension, you are legally obliged to report any increases in means to the department within a period of three months. If you do not do so, you may incur an overpayment of pension which you (or your Estate after your death) will have to repay.
The main items that count as means include:
If you are married/in a civil partnership or are cohabiting with another person, your means will be taken as half the joint means of you and your spouse/partner.
(a). Income from employment:
If you and/or your spouse, civil partner or cohabitant are in employment, €200 will be disregarded from each of your weekly earnings. Social insurance contributions, superannuation contributions and trade union subscriptions will also be disregarded. The balance will be assessed as you means for pension purposes.
You should note that neither income tax nor Universal Social Charge (USC) can be deducted from your earnings.
(b). Income from self-employment:
Income from self-employment is taken to be the gross profit less allowable work-related expenses, but not drawings. If you take 'drawings' from the business, these are assessed as cash income.
There is no exhaustive list of all allowable expenses in self-employed cases, since these vary with the nature and extent of the self-employment. However, the following are the main allowable expenses in most instances;
Household running costs are not allowed as deductions against business profit.
(c). Income from farming:
If you own a farm of land, the yearly value of any advantage that you or your spouse/partner have from owning or leasing it will be assessed as income. The yearly value is worked out by deducting any necessary expenses incurred from the gross income.
If you or your spouse/partner deprive yourselves of an income in order to either qualify for pension, or to qualify for pension at a higher rate, that income will be assessed against you as means. However, this may not apply in the case of certain family settlements involving the transfer of ownership of a farm/business.
(d). Maintenance Payments:
A portion of maintenance payments received by a claimant is assessed as means in accordance with the following formula;
A. Actual maintenance payments received by claimant
B. Less vouched housing costs* actually incurred by the claimant (net of rent subsidy received from the Health Service Executive) of up to €95.23 per week
C. Balance is assessed at 50%
Example
Weekly maintenance payment received | €200.00 |
Mortgage repayments (€120.00 pw) | €95.23 |
Balance | €104.77 |
Assessed as weekly means (50%) | €52.39 |
Capital refers to savings, shares, bonds, funds, cash-on-hands and property (excluding your own home) that you have. The value of all these items is added together and a special formula (see below) is applied to their total value to calculate your weekly means.
If you are married, in a civil partnership or cohabiting with another person, then each of you will be assessed (using the formula below) with half of your joint capital
Formula
Capital: Weekly means assessed:
Amount of savings and investments | Weekly means assessment |
First €20,000.00 | Nil |
Next €10,000.00 | €1.00 per €1,000.00 |
Next €10,000.00 | €2.00 per €1,000.00 |
Balance | €4.00 per €1,000.00 |
If you save a portion of your State Pension Non-Contributory each week, these savings will be taken into account as part of your means. Depending on the amount of savings you accumulate, this may result in a reduction in (or revocation of) your pension.
You are legally obliged to notify the department within three months of any increase in your means.
If you or your spouse/partner deprive yourselves of capital in order to either qualify for pension, or to qualify for pension at a higher rate, then that capital will be assessed against you as means. However, this may not apply in the case of certain family settlements involving the transfer of ownership of a farm/business."
A list of the main items that are not taken into account in the means test are set out in Appendix 1.
If, due to old age or incapacity, you vacate your home either on a temporary basis or indefinitely, the value of your home will not be assessed as means. However, if it is put to profitable use (e.g. rented out), the capital value of the house will then be assessed as means.
If you offer the property for sale, the capital value will not be assessed as means for a period of two years from the date on which it was offered for sale. However, if the property is sold within the two year period or subsequently, the income from the sale may be assessed as means (see following paragraphs).
If you are living in accommodation which no longer suits you or which you are no longer able to maintain, you may be able to sell your home and move to more suitable accommodation without the sale proceeds affecting your weekly means. The proceeds of the sale up to €190,500.00 may be disregarded when assessing your weekly means.
The exemption only applies where you sell your home and you,
If you buy more suitable accommodation, the balance of the proceeds after buying the new accommodation is exempted up to a limit of €190,500.00.
Example 1
A person sells his or her house for €200,000 and buys alternative accommodation for €150,000, the balance of €50,000 is not counted as means as it is below the limit of €190,500.00.
Example 2
A person sells his or her house for €450,000 and buys alternative accommodation for € 200,000 leaving a balance of €250,000. For pension purposes, a sum of €59,500.00 (i.e. €250,000 less €190,500.00) will be assessed as means.
If you sell your home and move into a private nursing home which is registered under the Health (Nursing Homes) Act 1990, the proceeds of the sale up to €190,500.00 are exempted.
Example;
A person sells his or her house for €220,000 and moves into a private nursing home. For pension purposes a sum of €29,500.00 (i.e. €220,000 less €190,500.00) will only be assessed as means.
If you sell all or part of your home to a financial institution or to another party, e.g. under an equity release agreement, and you are permitted as part of this arrangement to continue to reside in your home the amount you receive from this sale will be fully taken into account in calculating your means for pension purposes. In other words, the sale of residence disregard of €190,500 does not apply in this case.
Example
John (70) is getting a State Pension Non-Contributory at the maximum rate. He owns his home but decides to sell a part of it to a bank for €100,000. As part of this sale, it is agreed between the parties that John can continue to reside in the house for the remainder of his life. John has no income other than his State Pension Non-Contributory. He has, however, savings of €18,000 in post office savings certificates. The total amount of John's money (€118,000) will be assessed as means for pension purposes as follows;
Savings | Rate of € per 1000 | Weekly Means** |
First €20,000 | @ nil | 0 |
Next €10,000 | @ €1.00 per €1,000 | €10.00 |
Next €10,000 | @ €2.00 per €1,000 | €20.00 |
Balance of €78,000 | @ €4.00 per €1,000 | €312.00 |
Total Weekly Means | €342.00 |
John's total weekly means are €342.00 which is well above the maximum statutory limit for entitlement to pension. On this basis, his State Pension Non-Contributory would be revoked.
If you qualify for a State Pension Non-Contributory, the pension will be made up of a personal rate for yourself and extra amounts for your dependents (see following paragraphs). The actual amount of your weekly personal rate of pension as well as the increase for your qualified adult and child/children will depend on the level of your means. Details are set out in the Rates of Payment Booklet SW19 .
A single person who has no other means can have capital of up to € 40,999 and qualify for the maximum rate of pension of € 237.00 per week. Alternatively, the same person can have capital as high as €98.999 and qualify for a reduced pension of €4.50 per week.
A married, in a civil partnership or cohabiting couple who both satisfy the other conditions of the scheme and whose means are derived solely from capital can have joint capital of up to €81,999 and each can qualify for the maximum rate of pension of €237.00 per week. Alternatively, the same couple can have joint capital of up to €197.999 and each can qualify for a reduced pension of €4.50 per week.
If the rate of pension payable to persons who were in receipt of any payment as listed below immediately prior to becoming entitled to State Pension Non-Contributory will be greater than the amount of State Pension Non-Contributory payable then they will receive the amount they were receiving from such payment prior to entitlement or the rate of State Pension Non-Contributory as assessed.
If you are married, in a civil partnership or living with another person aged under 66, you may be entitled to an Increase for a Qualified Adult (IQA) in respect of him or her. Alternatively, if you have children living with you and you are single, widowed or separated, you may get the IQA for a person who is caring for the child/ren provided the person concerned is aged 16 or over, living with you and is being supported by you.
You will not get IQA if the person concerned
Claims for the increase for a qualified adult made after 24 September 2007 will be paid directly to the spouse/partner concerned, unless the qualified adult chooses to have someone else collect it for them.
If you are awarded an Increase for a Qualified Adult (IQA), please keep in mind that your qualified adult may be entitled to claim a State Pension Non-Contributory in his or her own right on reaching age 66. On reaching age 66 the IQA will automatically cease and he or she will be invited to apply for State Pension in his or her own right. It should be noted that it will be more financially beneficial to you as a couple if each of you receives a pension in your own right.
Alternatively, if your spouse/partner has been employed or self-employed, it is possible that he or she may qualify for a State Pension Contributory at age 66. Entitlement to this pension is based upon insurance contribution conditions. Please see the State Pension Contributory Frequently Asked Questions.
You may claim Child Support Payment for a child aged under 12 of €36.00 per week and €40.00 per week for a qualified child aged over 12 for each of your qualified childern who normally live with you and are being maintained by you. The increase may also be paid in respect of a child between 18 to 22 years of age if he or she is in full-time education by day at a recognised school or college.
Child Support Payment may be paid at either the full rate (€36.00/€40.00) or at half-rate (€18.00/€20.00) as follows;
Child Support Payment is not payable where the child is getting a social welfare or health service executive payment in his or her own right (e.g. Disability Allowance, One-Parent Family Payment).
State Pension Non-Contributory is payable weekly in advance on Friday. It may be paid
or
Claims for the increase for a qualified adult made after 24 September 2007 are paid directly to the spouse/partner concerned; unless the qualified adult chooses to have someone else collect it for them.
State Pension Non-Contributory is payable as long as you satisfy the qualifying conditions for receipt of payment. However, the pension will cease if you are subsequently awarded a State Pension Contributory payable at a higher rate.
Please see Appendix 2 for a list of other allowances and benefits that you may qualify for.
You should apply for the pension three months before reaching age 66. This is to allow sufficient time for the department to process your claim so as to ensure that, if pension is awarded, it will be paid from the Friday following the date on which you reach age 66. If you claim pension after reaching age 66, payment will normally be made from the Friday following the date on which your application is received. (However, please see paragraphs on late claims below).
To apply, please complete an application form (SPNC1), available from your post office, your local Intreo Centre/Social Welfare Office or from Social Welfare Services, Sligo. When completed, please send it along with all necessary supporting documentation to:
Application Form: State Pension (Non-Contributory) (SPNC1)
Edition: January 2022
Note: The rates charged for using 0818 (LoCall) numbers may vary among different service providers.
Evidence of births and marriages which occurred in the State are available to the department and are not required to be sent with your application. However where the birth or marriage occurred outside the State evidence must be provided by sending us the following certificates, where relevant:
We do not accept photocopies of certificates. If you are not able to get the certificate(s) immediately, you should send in your pension application form with a note stating that you will send the certificate(s) as soon as possible. If you are sending in your certificate(s) at a later date, please ensure that you quote your Personal Public Service Number (PPSN). You will get this number at your Local Intreo Centre/Social Welfare Office.
If you are claiming for a qualified child who is aged 18 to 22 and in full time education you should send in a letter from a school or college confirming their attendance.
Please apply for pension on time i.e. three months before you reach age 66. If you are awarded pension, it will become payable from the Friday following your 66th birthday. However, if you apply for pension late, you may lose out on part of your entitlement. There is provision to backdate the award of pension for up to 6 months before the date on which the claim was made. However, you will have to have a valid reason for claiming late before any decision to back-date the claim is considered.
It is also possible in certain exceptional circumstances to back-date claims for periods in excess of 6 months as follows;
In all cases where a back-dated payment is being considered, entitlement to pension throughout that period must have been satisfactorily established.
If you feel that you may be entitled to a back-dated payment under any of the provisions outlined above, please set out your case in writing to us and supply any supporting documentation. Please also quote your Personal Public Service Number (PPSN) in your correspondence.
Your application for pension will be decided by a statutorily appointed Deciding Officer of the department who will notify you in writing of his or her decision. Deciding Officers are independent in the exercise of their functions in deciding on entitlements to pension. If your claim is disallowed or allowed at a reduced rate of payment, you will be given full details including details of the means assessed.
If you consider that the decision you receive is incorrect, or you require clarification in relation to it, please contact the Deciding Officer immediately. It is also open to you to forward to the Deciding Officer any further documentary evidence that you think is relevant and he or she will then review the decision.
If you are not satisfied with the Deciding Officer's decision (either before or after seeking a review), you may appeal it to the independent Social Welfare Appeal's Office by writing to the Chief Appeals Officer setting out fully the grounds of your appeal:
Your appeal should be submitted within 21 days of the date of the decision letter. However, if you first seek a review by the Deciding Officer, you have 21 days from the completion of that review in which to make your appeal.
State Pension Non-Contributory is not normally paid to people who reside outside the State. However, if you go to live in Northern Ireland, and were in receipt of a State Pension Non-Contributory immediately before you moved, your pension can continue to be paid for up to five years subject to certain conditions.
You can go abroad in exceptional circumstances for a limited period and the department will review your entitlement when you return. You must notify the Department of Employment Affairs and Social Protection in advance of leaving the State.
The State Pension Non-Contributory Section, Department of Employment Affairs and Social Protection, Social Welfare Services Sligo, College Road, Sligo must be notified as quickly as possible if any of the changes set out below occur as they may affect your entitlement to pension. Remember to quote your Personal Public Service Number (PPSN) whenever you contact us.
If the means of you or your spouse or partner increase for any reason, you are legally obliged to notify the department of the increase(s) within a period of three months. For example, if you or your spouse are getting a British Retirement Pension or any other type of income, you must notify us in writing of any increases in this income by sending us a copy of the latest payment slip(s) you receive. Also, if the combined value of your savings, shares, bonds, funds, cash-on-hands and property (except your own home) increases, you must advise us of the details.
If you do not notify the department of increases in your means, you may incur an overpayment of pension which you (or your Estate after your death) will have to repay.
Other changes which require notification
A review is initiated when the department is notified of any change in circumstances that may affect entitlement. This review may be carried out by way of a visit from a Social Welfare Inspector or by direct correspondence or phone contact.
Periodic reviews are also initiated by the department to confirm that the correct payment is being made to the correct person and that the qualifying conditions for receipt of State Pension Non Contributory continue to be fulfilled.
Under the Freedom of Information Acts 1997 and 2003, you have the right;
You may not be able to access certain records which are exempt under the Act e.g. information relating to another person. Requests for access to records must be made in writing and contain enough information so that we know what records you are looking for. Request forms are available from your local Intreo Centre/Social Welfare Office or from the department's website.
The following are most of the items that do not count as means;
All income derived from compensation or ex gratia payments awarded:
(a) by the Compensation Tribunal established by the Minister for Health on 15.12.95, the Hepatitis C Compensation Tribunal established under Section 3 of the |Hepatitis C Compensation Tribunal Act, 1997 (No. 34 of 1997), the Hepatitis C and HIV Compensation Tribunal established under Section 2 of the Hepatitis C Compensation Tribunal (Amendment) Act, 2002 (No. 21 of 2002), or by a court of competent jurisdiction, to compensate certain persons who have contracted Hepatitis C or Human Immunoglobulin Virus within the State from the use of Human Immunoglobulin - Anti-D, whole blood or other blood products, or
(b) to persons who have disabilities caused by Thalidomide and
(c) to persons by the Residential Institutions Redress Board.
(d) under the provisions of the Health (Repayment Scheme) Act 2006 (No. 17 of 2006) to a relevant person within the meaning of that Act.
(e) By the MCS (Magdalen Commission scheme) allowance.
(f) by the Lourdes Hospital Redress Scheme 2007.
(g) under the terms of the Lourdes Hospital Payment Scheme established by the Minister of Health
(h) under the terms of the Symphysiotomy Payment Scheme
(i) under the Scheme of Compensation for Personal Injuries suffered at the Stardust, Artane on 14 February 1981
(j) by the Residential Institutions Statutory Fund Board
(k) under the aegis of the Minister for Education and Skills and known as the 1916 Bursary Fund.
(l) in accordance with recommendations proposed by the Scoping Inquiry into the Cervical Screening Programme
(m) under the package of support measures established in 2018 for women diagnosed with cervical cancer since 2008
(n) to a maximum of €7,000 per anum payments made by Uversity and known as Higher Educational Scholarships for Adult Learners
(o) by Sport Ireland under the International Carding Scheme
(p) by the Northern Ireland Victim and Survivor Service (VSS) in accordance with the Victims and Survivors (Northern Ireland) Order 2006
(q) by the Minister of Education and Skills as part of the School Transport Scheme for Children with Special Educational needs in the form of Special Transport Grant.
proceeds from the sale of your home subject to a limit of €190,500(see Section 3)
Increase for living on a specified island
A special increase of €12.70 per week is automatically paid to state pensioners who normally reside on any one of the prescribed islands off the coast of Ireland ( see Appendix 3). The increase is paid as part of the pension.
Living Alone Increase
If you qualify for State Pension Non-Contributory and you reside entirely alone or mainly alone (in certain circumstances), you will be entitled to a Living Alone Increase of €14.00 per week. This increase will be paid as part of your pension.
Over 80 Increase
When a recipient of State Pension Non-Contributory reaches age 80, his or her personal rate of pension is automatically increased by €10.00 per week.
Centenarian's Payment
The President of Ireland makes a payment of €2,540 to all citizens (and others considered to be normally living in the State) on reaching 100 years of age. This payment is issued automatically to those who are getting a social welfare payment. Non social welfare recipients may receive the payment by contacting the President's Office directly.
Fuel Allowance under the National Fuel Scheme
The National Fuel Scheme is intended to help households who are dependent on long term social welfare or health service executive payments and who are unable to provide for their own heating needs. The scheme operates from mid October to mid April.
If you qualify for a State Pension Non-Contributory, you may also be eligible to claim a Fuel Allowance of €24.50 per week.
Household Benefits Package
All persons resident in the State age 70 and over are entitled to claim the following free scheme benefits, subject to the condition that only one set of allowances are payable per household;
Electricity Allowance
Free Television Licence
[As an alternative to the electricity allowance, a person may claim a Natural Gas Allowance, Bottled Gas Allowance or Electricity (Group Account) Allowance].
If you are under age 70 and qualify for a State Pension Non-Contributory, you may claim these benefits if you reside alone or only with certain excepted categories of people.
Free Travel
On qualifying for a State Pension Non-Contributory, you will receive a Free Travel Pass from the department. This pass entitles you and your accompanying spouse/partner to free travel on the services provided by certain public and private transport operators.
The All Ireland Free Travel Scheme entitles you to travel for free on transport services operating internally in Northern Ireland, using a Senior Smartpass card. Under the terms of this scheme only the Smartpass holder is entitled to travel free of charge. The Smartpass does not entitle your spouse/partner/companion to accompany you for free within Northern Ireland but they may continue to travel with you for free on cross border journeys.
Carer's Allowance/Benefit
From September 2007 a person who is claiming a Social Welfare Payment (other than Carer's Allowance or Carer's Benefit) or being claimed for as a Qualified Adult and who is providing full time care to another person may now apply for Carer's Allowance and retain their current payment in full. If they satisfy the conditions for Carer's Allowance it will be awarded at 50% of the personal rate they would qualify for if they were not in receipt of any other payment. They will also be eligible for Household Benefits and a Free Travel Pass.
If you need full-time care and attention, the person looking after you may qualify for a Carer's Allowance or Carer's Benefit. Carer's Allowance is a means-tested payment.
Carer's Benefit is a payment made to insured persons who leave the workforce to care for a person in need of full-time care and attention
Six weeks after death payment
If you die while in receipt of a State Pension Non-Contributory which includes an Increase for a Qualified Adult (IQA), your spouse/partner will receive a cheque representing payment of your pension including IQA for the entire six week period following the death. He or she may be entitled to a State Pension Non-Contributory or a Widow's/ Widower's or Surviving Civil Partner's from the beginning of the 7th week following the death.
If you die while in receipt of a State Pension Non-Contributory and your spouse partner is getting a State Pension Non-Contributory, State Pension Contributory, State Pension Transition, Blind Person's Pension or a Carer's Allowance in his or her own right, then your spouse/partner will receive a cheque representing payment of your pension for the entire six week period following the death.
If your qualified adult or qualified child dies, you will continue to receive the Increase for a Qualified Adult or Child Support Payment (previously known as Increase for a Qualified Child) as part of your pension for the six week period following the death.
An Increase for living on a specified island of €12.70 per week is paid to State Pensioners.
An tOileán Ruaidh (also known as Island Roy), Co. Donegal
Árainn Mhór, Co. Donegal
Árainn, Co. Galway
Bere Island, Co. Cork
Claggan Island, Co. Mayo
Clare Island, Co. Mayo
Cléire, Co. Cork
Clynish, Co. Mayo
Coney Island, Co. Sligo
Dernish Island, Moneygold, Co. Sligo
Dursey Island, Co. Cork
Fenit Island, Co. Kerry
Foynes Island, Co. Limerick
Gabhla, Co. Donegal
Heir Island (also know as Inishodriscol), Co. Cork
Inis Bearachain, Co. Galway
Inis Bigil, Co. Mayo
Inis Bó Finne, Co. Donegal
Inis Fraoich Uachtarach, Co. Donegal
Inis Meáin, Co. Galway
Inis Mhic Chionnaith, Co. Galway
Inis Oírr, Co. Galway
Inis Treabhair, Co. Galway
Inishboffin, Co. Galway
Inishcottle, Co. Mayo
Inishgort, Co. Mayo
Inishlyre, Co. Mayo
Inishnakillew, Co. Mayo
Inishturk Beg, Co. Mayo
Inishturk, Co. Mayo
Inse Ghainnimh, Co. Galway
Islandmore, Co. Mayo
Lambay Island, Co. Dublin
Long Island, Co. Cork,
Omey Island, Co. Galway
Sherkin Island, Co. Cork
Toraigh, Co. Donegal
Whiddy Island, Co. Cork