asked the Minister for Social Welfare the method by which the exchange rate for a UK pension is calculated; her views on the fairness of this system; and if she has any plans to ensure that the exchange rate will be based on the value of the punt at the time the UK payment is issued.
Written Answers. - UK Pensions.
166.
It is presumed that the question refers to the manner in which UK social security pensions are assessed as means when determining entitlement to non-contributory pension.
Under the provision of the scheme, pensioners are assessed with all income which they may reasonably expect to receive during the year succeeding the date of calculation. This income includes foreign pensions.
In calculating the value of a UK pension, the rate of exchange is taken from the rates of exchange which are fixed for each quarter year by Council Regulation (EEC) No. 2615/79 for the purposes of certain social security transactions between member states of the European Communities.
In view of the variations which have occurred in recent times between Irish and UK currencies, the exchange rate in use is, in fact, the more favourable from the claimants point of view of the latest two quarterly rates under regulation.
UK pensions are usually increased in November of each year and this can give rise to a revaluation of the means of non-contributory pensioners whose means are thereby increased. The recalculation — which is carried out in the beginning of the following year — is similarly done by choosing the exchange rate from the regulations appropriate to last quarter of the year or the first quarter of the succeeding year, which is even more favourable to the pensioner.
The old age, non-contributory, scheme does not allow weekly or frequent adjustments to means and thereby adjustments to entitlement. If however, any pensioner feels that his means have changed substantially, it is open to him or her to apply for a reinvestigation of his or her circumstances with a view to having the entitlement reviewed. The method of valuing UK pensions is considered to be both practical and fair. It is however kept under review.