The methods of assessing capital for the purposes of old age non-contributory pension were revised with effect from 17 October 1997. The changes significantly improved the position of pensioners in that a far greater proportion of capital, including savings and investments, may now be disregarded for means-test purposes and a further amount of up to £20,000 is assessable at a lower rate.
As a first step, existing pension claims where all or part of the means were derived from capital were reviewed and the rate of payment adjusted to take account of the improved methods of assessing capital. This review involved over 20,000 claims, including old age pensions, blind pensions and carer's allowances, and the rates of payment were increased in approximately 60 per cent of cases.
In addition, all cases originally disallowed during 1997 on the basis of capital assessments were examined and application forms were issued to enable the people concerned to have their claims reconsidered in the context of the improved qualifying conditions.
The information leaflet dealing with the relevant pensions was updated to include the improved methods of assessment. A further edition of this leaflet will be available shortly from the Department's local offices and will also be widely distributed through the network of citizen's information centres and other organisations dealing with welfare rights. The improvements were also outlined in the Irish Independent and Sunday Business Post. They were also made available to the public via with AERTEL service for RTÉ.
