Social Welfare Entitlements and Other Benefits


The National Pensions Framework - March 2010

The National Pensions Framework Plan was launched in March 2010. This  plan outlines how the Government intends to deal with pensions, both State Pensions and Occupational Pensions into the future.

State Pensions
  • Mandatory social welfare pension coverage will continue
  • The Government will seek to maintain the rate of benefit at 35% of average weeky earnings
  • The system will be simplified to move to a "total contributions" approach which will replace the current "average" system of assessment
  • The State Pension Transition at 65 will no longer be available after 2014
  • The State Pension Contributory age will increase to 67 in 2021 and to 68 in 2028
Occupational Pensions
In the case of Occupational Pensions the Government intends to introduce Auto Enrolement whereby employees will be automatically enrolled into a new pension scheme unless they are a member of their employer's scheme and that scheme provides higher contribution levels or is a Defined Benefit scheme. Contributions to the new scheme will be made within a band of earnings, with earnings below and above certain thresholds exempt. Employees will be required to make a fixed percentage contribution. A State contribution equal to 33 per cent tax relief will be provided in respect of pension contributions made by the employee (within a band of earnings). Employers will be obliged to make a contribution equivalent to the State contribution. For example, a contribution of 4 euro to the scheme will comprise an employee contribution of 2 euro, a State contribution of 1 euro and an employer contribution of 1 euro. Access to Approved Retirement Funds will be provided.
If people decide that retirement saving is not feasible, they can opt out but there will be a once-off bonus payment for people who contribute to the scheme for more than 5 years.


Current Systems in Social Protection


Every aspect of Social Protection is covered by a relevant leaflet. In general the RPC recommends that you contact either the Department of Social and Family Affairs (SFA) directly to ascertain what (if any) benefits or allowances which you are entitled to obtain. This can be done either on-line at http://www.welfare.ie/ or alternatively by calling the LoCall Leaflet request line on 1890 20 23 25. The Citizens Information Centres http://www.citizensinformation.ie/ also provide advice on all these matters and details of your local office can be obtained on lo-call 1890.77 71 21 or email information@citizensinformation.ie

Benefits and Allowances


At the outset it is important to note that while Benefits are not means tested all Allowances are means tested.

Social Assistance Benefits are payments made to you on the basis of money you have paid into the scheme. You may also receive credits - which help build up your entitlements & benefits.

The main benefits relevant to you in retirement are:

The Transition Pension - payable at 65

The Contributory Pension - payable at 66

The Mixed Rate Pension - see below.

It is advisable that anybody who may qualify for these pensions seek a copy of their pensions record well before retirement. For a copy of your personal record contact the Central Records Office on LoCall 1890 690 690 or go on-line to http://www.welfare.ie/

To get your record you require your PPS Number and Date of Birth.

When you have your record you may take it to either your local Social Welfare Office or your local Citizens Information Centre and ask for assistance in making the calculation of your entitlement.

If you retire early you may also be entitled to Jobseekers Benefits (formerly unemployment benefits).

Benefits are not means tested.

In general what you receive depends on what you have paid in.

Social Assistance Allowances on the other hand are discretionary payments made by the Department on the basis of an examination of your financial situation. They are means tested.

You are eligible for benefit according to the Class of Social Insurance you are in and the PRSI contribution record you maintain.

There is nothing automatic in the payment of Social Insurance Benefits.  You must fulfil all of the relevant conditions necessary to obtain the benefits, for which you are eligible, and to which you are entitled AND you must apply for them in good time (usually 4-6 months for pensions).

State Pension - Transition


This pension becomes payable at age 65 to Class A contributors.

ALSO, in order to qualify for benefit you must have retired from insurable employment e.g. you cannot be in a job where you earn more than 38 euro p.w. or be self employed and earn more than 5,000 euro p.a.

This benefit is NOT means tested.

Further information regarding this benefit may be obtained from Social Welfare booklet SW 118.

 

State Pension - Contributory


This pension, which was formerly called the Contributory Old Age Pension, becomes payable at age 66 to Class A and Class S contributors.
ALSO, unlike the Transition Pension, there is no prohibition on earnings and you can earn any amount and still qualify for this pension.
This benefit is NOT means tested but if you do not qualify, an alternative Non-Contributory State Pension, which is means tested, is available.
Further information regarding this benefit may be obtained from Social Welfare booklet SW 118.


Mixed Insurance Pro Rata Pension


If you are a Class B, C or D contributor but have worked in a Class A employment previously, you may be entitled to a Mixed Insurance Pro Rata Pension, provided you have 260 PAID Class A contributions. The rate of pension is paid in proportion to your Class A contributions and your total contributions and the Qualified Adult Allowance is also paid on a pro rata basis.

Contributory Widowed Persons Pension

This pension is available to Classes A, B, C, D or S and is payable in the event of the death of either spouse.
If you are in receipt of this pension, you are exempt from the Health Levy on the pension AND on any other earnings which you may have.
Further information concerning this benefit may be obtained from Social Welfare booklet SW 25.

Qualified Adult Allowance: (Means Tested)


This applies where you may be entitled to claim for a dependant.
The would-be Qualified Adult must be financially dependant on you as well as satisfying other conditions.
Further information concerning this may be obtained from Social Welfare booklet SW 11.

Working Abroad


If you have worked in another EU Country or in a State with which Ireland has a bilateral agreement, you may receive a pension from both or use the contribution record from each to help qualify for a pension in Ireland.
Ireland has bilateral agreements with the United Kingdom, United States, Switzerland, Canada, Australia and New Zealand.
Contact your local Social Welfare Office or your local Citizens Information Office for any help you require.

Income Tax

With a few minor exceptions, Social Welfare payments are subject to income tax. If, therefore, you are in receipt of payment, you should inform your tax office so that your tax credits and cut-off point are correct.

Household Benefit Package


This package is normally available to Class A contributors at age 66 and to others at age 70 provided that the qualifying conditions are met. The package is made up of three allowances as follows:

  • Electricity or Gas Allowance
  • Telephone Allowance
  • Free Television Licence

Further information concerning this package may be obtained from Social Welfare booklet SW 107.

Medical Card

A medical card may be obtained by everybody at age 70 on a means tested basis. The income limits for 2009 are 700 euro per week for a single person or 1,400 euro per week for a couple. With a few exceptions a means test normally applies before age 70. Everybody in receipt of a medical card is exempt from paying the Health Levy.

Free Travel

A free travel pass may be obtained by everybody, on a non means tested basis, at age 66 and a named companion, who may be under age 66, can be included on the card. Further information concerning this package may be obtained from Social Welfare booklet SW 40.


Additional Resources