Minister for Social Affairs Séamus Brennan today announced a new standard non-contributory pension scheme aimed at streamlining pension arrangements.
The new State Pension will replace the Old Age Pension and will allow pensioners earn up to €100 per week without having their pension entitlements affected.
The increased earnings allowance will enable pensioners to earn up to €5,400 a year without it affecting their pension entitlements.
The changes come in addition to the Budget increase of €16 per week and increases in the over-80s and fuel allowances. Some 34,000 of the country's 89,000 non-contributory pensioners will benefit to the tune of €720 a year through an additional €12.20 per week.
Mr Brennan said "Our older people are now living longer and healthier lives, and the change to State pension should be seen as society's recognition of the contribution of our older people to the building of modern Ireland, while at the same time, sending out the message that we also value the potential contribution to society in their later years of thousand of fit, able and willing men and women."
Under the new arrangements, a further 8,700 pensioners will be lifted onto the maximum rate, bringing to 72,400 (74 per cent) the number of non-contributory pensioners on the full rate.
Under the scheme, the names of a number of social welfare support schemes will be modernised to allow for the removal of terms such as "old age" and "disability benefit" - which will be changed to "illness benefit".
