The rate of early retirement pension payment was initially set in 1994 at a basic 4,000 ecus – £3,905 – and 250 ecus – £244 – per hectare up to a maximum of 10,000 ecus – £9,764 – for a farm of 24 hectares or over. With the devaluation of the Irish punt in 1996 the maximum pension increased to £10,016.26 and was paid at this rate from 1 January 1996 to the end of December 1998.
The rate of pension paid to participants in the early retirement scheme was reduced by 5.055% from 1 January 1999 due to the introduction of the euro and the abolition of frozen green rates. This has resulted in a maximum pension of £9,509.93.
Formal approval to pay compensation for this reduction to participants in the scheme was received from the European Commission on 8 December 1999. Compensation issued to current scheme participants with their January cheques.
Two further tranches of compensation at reduced levels will be paid as soon as they are sanctioned by the Commission.
The number of active participants in the scheme of early retirement from farming at the end of January 2000 was 8,789.