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Dáil Éireann debate -
Thursday, 17 Oct 1991

Vol. 411 No. 2

Written Answers. - Agreement With US.

Enda Kenny

Question:

28 Mr. Kenny asked the Minister for Social Welfare if he will outline the current position regarding the bilateral agreement with the US Government which allows US social security pensioners living in Ireland to receive the added benefits payable by his Department to Irish pensioners; if he will further outline the number of pensioners who will so benefit from this scheme; the cost to the State of this scheme; and when he expects the agreement to be enforced.

I expect that the agreement on social security with the United States will be ready for signature shortly.

This agreement is one to which I attach a great deal of importance in view of the very significant number of Irish emigrants who have spent a considerable part of their working lives in that country. Discussions on the text of this agreement have been substantially completed between officials of my Department and their counterpart officials in the United States. Subject to clearance of one outstanding issue the agreement is ready for signature.

The agreement, when completed, will cover the Irish social welfare schemes of contributory old age pension, retirement pension, contributory widows and orphans pension, invalidity pension and death grant, and on the US side, the federal programmes of old age, survivors' and disability insurance. Its main purpose will be to allow periods of employment in one country to be counted towards satisfying the conditions for pension entitlement in the other country. In addition, on the Irish side, when the agreement becomes operational, recipients of US social security pensions who are resident in Ireland will become eligible, on a par with Irish pensioners, for free travel, free electricity, free TV licence, free telephone rental and free fuel. This is as a result of the initiative which I introduced as part of the social welfare improvements in last year's budget.

It is very difficult to determine with any degree of accuracy the numbers of persons likely to be affected and the consequential financial impact, of bilateral agreements on social security. However, it is estimated that approximately 600 people will qualify for Irishpro-rata pensions under the provisions of the agreement in the first year of operation at an estimated cost of £700,000.
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