# Contributory pension and wife with no PRSI contributions. How to calculate entitlements?



## primrose (6 Jun 2016)

Hi I am hoping somebody can clarify the below

A family member has 48+ yearly average contributions thus will be entitled to €233.30 per week next year when he is 66. His wife however has made no contributions i.e. stay at home wife. Looking at the citizens advise website it states that she is entitled to maximum €209 for Increase for a qualified adult* (over 66). Can you confirm that I am reading this correctly and that this amount awarded to her is means tested.


Secondly if the main claimant husband has € 60, 000 in deposits in his name,  her means are calculated as follows.
Total means although the money is in his name is €60, 000/2 = 30, 000. She is entitled to have maximum of €20, 000. She is left with €10, 000 accessible means.

Thus her Weekly means assessed is €1 for every thousand is € 10.

Thus she will be deducted 10 euros for her means leaving them with (233.3  + 209 -10) = 432.3. Is this correct?

Or am I reading this incorrectly or should I be looking at the contributory pension for him and the non-contributory pension dependant over 66 years old for her?

I appreciate all advise given


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## Gerry Canning (7 Jun 2016)

Stay at home wife is added onto your paid contributions ie she gets the 209 as of right .
Because it is Contributory , there is no means test on her.

Again because yours is Contributory , she could win the lotto and still get the 209.


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## Joe_90 (7 Jun 2016)

Gerry Canning said:


> Stay at home wife is added onto your paid contributions ie she gets the 209 as of right .
> Because it is Contributory , there is no means test on her.
> 
> Again because yours is Contributory , she could win the lotto and still get the 209.



Are you sure about that.  I understood that the increased adult allowance was means tested.


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## Gerry Canning (7 Jun 2016)

I am 100% sure .
No doubt,  if I am wrong ( and I am prepared to give good odds that I am not) , some of the AAM posters will shortly correct me !

And  I will be shortly in same situation as yourself, so any doubt needs dispelling .


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## Conan (7 Jun 2016)

Sorry Gerry, but you ARE WRONG.
The "Qualified Adult Allowance" is means tested. The Qualified Adult must be financially dependant on the retiree. That means the "stay at home wife" cannot have an income over €100 pw (in which case a reduced benefit is paid) or if over €310 pw no income is paid. In addition the value of any savings/property - other than the family home - (individually or jointly owned) is also taken into account. So if she wins the Lotto, she would no longer be financially dependant (presumably) and thus not qualify for the additional payment. 
The Qualified Adult Allowance is €155.50 pw where the adult is under age 66 and €209.00 pw where the Adult is aged 66 or over.


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## Gervan (7 Jun 2016)

Conan said:


> the value of any savings/property - other than the family home - (individually or jointly owned) is also taken into account.


In this case, the wife does not own the deposits, which are solely in the husband's name. Therefore that should not figure in her income calculation.


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## Gerry Canning (7 Jun 2016)

Conan/Gervan.

So barring an exceptional windfall,or access to other nominated wealth,  Primroses wife or my wife may have , its clearly 209 per week, on the strength of husbands Contributory payments.
I assume I am now correct .?

Thanks for the clarity.


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## primrose (7 Jun 2016)

Thank you all for replying. Citizens advise although I acknowledge not always correct have informed me that the wifes 209 pension portion will be means trsted based on half the total assets held seperately and jointly obviously excluding PPR.           
If it is means tested it would be make sense that half the assets between them be assigned to the qualified adults, otherwise what would stop the main claimant contributory pension applicant from putting all bank accounts in his name.
Note its only assets in deposit accounts roughly 70-90 that will be means tested. Do not forsee any additional income after 66.


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## Conan (7 Jun 2016)

Gerry,
Assuming the spouse has no income, only assets held in her name or 50% of jointly-held assets are taken into account. Jointly held assets of €115,000 are deemed equal to €100 pw income (so entitled to full Adult Dependant rate €155.50/€209.00). However if jointly held assets exceed €220,000 that equates to €310 pw income, so no entitlement.  
Hope that is clear?


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## primrose (7 Jun 2016)

Lastly if the main claimant was to gift his daughter in the region of 40,000 for a house deposit rougly a year before the wife was means tested on half their joint assets, leaving her means as follows say 80000(joint deposits currently)-40,000 (gift) divided by 2 = 20000 disregard as her means. Thus she would be able to avail of the full 209 euros.
Would this be seen as evading the means test calculations.?
Also should all the assets be put into the main claimants name?


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