asked the Minister Industry, Commerce and Tourism if he is aware of the policy of insurance companies who have headquarters outside the country to pay pensions in Irish pounds even though the premiums, which may have been paid for as long as 25 or 30 years, were paid when sterling and Irish currency had a one-for-one relationship; and if he will make a statement on the matter.
Ceisteanna—Questions . Oral Answers . - Insurance Company Pension Payments .
14.
: I am assuming the Deputy is referring to pensions paid by way of annuities under life assurance policies.
Since 1960 all life assurance policies issued in this country have been expressed in Irish currency, both as to benefits and premiums payable, and the question of paying in sterling does not arise.
In regard to policies issued before 1960 and denominated in sterling, I understand that, following the break in parity between the Irish and UK currencies, most of the life offices concerned gave policyholders the option of selecting between the two currencies with future premiums and benefits to be paid in the currency selected. Whether a policyholder is entitled to receive in sterling the benefits payable under an insurance policy denominated in sterling depends on the contractual terms of the policy and whether any option given was exercised.
: Is the Minister aware that, even where pensions are being paid in sterling or at a rate which is supposed to compensate for sterling, in fact the amount they compensate by would be about 10p whereas the difference between the púnt and the pound sterling is nearly 20p at the present time?
: The problem arises only in the case of policies taken out before 1960.
: Is the Minister aware those are the people who are retiring now?
: The position is that if they were paying in sterling they are being repaid in sterling. It depends on whatever currency they have opted for.
: Is the Minister not aware that the information he has got is not correct, that in fact most of the policies being paid at the present time by British companies are being paid either in the Irish currency or in a currency of their own, somewhere in between the two, which does not compensate for the difference in the currencies? Those are the people who are retiring now. The people who joined since 1960 would not be retiring so soon.
: The information available to me is that the policyholders have the option of paying either in sterling or in the Irish currency.
: The Minister is missing the point. I quite agree that they now have the option to pay in whichever currency they prefer. Is the Minister aware that those who were paying before the change took place are, in fact, not being paid the amount they would have been paid if the disastrous decision of the Government had not taken place?
: That is not the information available to me.
: Will the Minister look at it again?
: I will.