State Pension (Non-Contributory)

Introduction

The State Pension (Non-Contributory) may be paid from age 66 to people in Ireland who do not qualify for a State Pension (Contributory). The Social Welfare Law Reform and Pensions Act 2006 (pdf) changed the name of the Old Age (Non-Contributory) Pension to State Pension (Non-Contributory). The new name came into effect on 29 September 2006.

Rules

You may qualify for the State Pension (Non-Contributory) if:

• You are aged 66 or over
• You do not qualify for an State Pension (Contributory)
• You pass a means test
• You meet the Habitual Residence Condition

The means test

Your means are assessed using specific rules under the following headings:

• Cash income (including, income from work)
• Value of capital (for example, savings, investments, cash on hand and property but not your own home) 
• Income from property personally used

Cash income

Any cash income you have is assessed in the means test. This includes income from a social security pension from another country. However, certain items of cash income are not taken into account in the means test.  For example, earnings of up to €200 per week from employment (but not self-employment) are not taken into account. Any income from work above €200 is assessed as means.

Payments you get under the Farm Retirement Scheme and income from property already assessed on its capital value are also not taken into account.

More information is available in our document about cash income not taken into account in the means test.

Capital and property not personally used

Savings, investments, cash on hand and any property you own (but not your own home) is assessed as capital. All your capital from different sources is added together and a special formula is then used to find your weekly means from capital. 

The property and investments that may be assessed under this heading include savings in a bank account (or anywhere else), a house that you have let and stocks and shares. You may or may not be getting an income from the property or investment. Income from property already assessed on its capital value is not assessed in the means test - see 'Cash income' above.

If you or your spouse or partner saves a portion of your State Pension (Non-Contributory) each week, these savings as well as savings from most other sources will be taken into account as part of your means.

More information is available in our document on how capital and property is assessed as means.

Different rules for the assessment of capital are used in the means tests for Disability Allowance (DA) and State Pension (Non-Contributory), this means, people moving from DA to State Pension (Non-Contributory) at age 66 could find that their pension is lower than their DA. The Social Welfare and Pension Act 2008, provides that, if you are moving from Disability Allowance (DA) to State Pension (Non-Contributory) at age 66 you will not get a lower rate pension because of a less favourable assessment of capital.

Income from property personally used (your home)

The value of the house you live in is not taken into account in the means test. However, any income you are getting from it is taken into account. For example, if you rented a room in your house, that income is assessed. There is an exception to this, if not renting the room means that you would be living alone then your income from rent is not taken into account.

If you sell your home, the proceeds of the sale would normally be taken into account as means. However, if you sell your house in order to buy or rent more suitable alternative accommodation or to go into a nursing home, the first €190,500 of the sale proceeds is not taken into account. Since April 2002, this condition is extended to people getting State Pension (Non-Contributory) who sell their home to move in with a person who is caring for them and getting a carer's payment or who move to sheltered or special housing in the voluntary, co-operative, statutory or private sectors.

The proceeds of the sale may be taken into account by the Health Service Executive (HSE) if your entitlement to a nursing home subvention is being assessed.

Total means

Your means under the various headings are added together to see what level of pension, if any, you can get. If you are one half of a couple (married couple or a man and woman living together as man and wife) then your means are taken to be half of the total means of yourself and your spouse or partner.

The first €30 per week of means as assessed by the Department of Social and Family Affairs does not affect the rate of pension. After that, the pension is reduced by €2.50 each week for every €2.50 of means.

If you are getting Farm Assist and the different means test that applies to the State Pension (Non-Contributory) results in you getting a lower level of payment, you keep your entitlement to the higher amount.

Married and cohabiting couples

When your spouse or partner reaches 66 years of age you will not get an increase in your payment for them as a qualified adult.  However, he/she may apply for a State Pension (Non-Contributory) in his/her own right.

From 27 September 2007, if you are getting State Pension (Non-Contributory) the Increase for a Qualified Adult will be paid directly to your adult dependant. This only applies to applications for state pensions received by the Department of Social and Family Affairs after 27 September 2007.  

Rates

The maximum rate of State Pension (Non-Contributory) in 2010:

How to apply

To apply fill in a State Pension (Non-Contributory) application form (pdf).  You can get an application form from your local Social Welfare Office. Completed application forms should be sent to the address below.

Application forms are also available in post offices. You should apply three months before you reach age 66. You may be visited by a social welfare officer who will assess your means. You will be told how exactly your means were assessed. If you are not satisfied, you may appeal to the Social Welfare Appeals Office.

Where to apply