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Dáil Éireann debate -
Wednesday, 11 Apr 2001

Vol. 534 No. 4

Written Answers - Pension Provisions.

Paul Connaughton

Question:

174 Mr. Connaughton asked the Minister for Social, Community and Family Affairs the method used by him to calculate the exchange rate for pensioners who are in receipt of pensions from outside the State and who believe that they are entitled to a part old age non-contributory pension from his Department; the reason the exchange rates used by him appear on average to be higher than that available in the various banks at a particular time; and if he will make a statement on the matter. [10837/01]

In assessing the means deriving from social security payments made in other EU currencies, the Department employs the exchange rate at which the currencies of participating EMU states were fixed against the euro on 1 January 1999. In the case of non-EMU states of the European Union, the Department uses an exchange rate mechanism which was used throughout the EU prior to 1999 and is now used for non-EMU member states. Under this mechanism, exchange rate factors for each non-EMU currency are determined quarterly by the EU Commission under Article 107 of Council Regulation (EEC) No. 574/72 on social security for migrant workers. The exchange rates for converting sterling and other non-EMU currencies are published quarterly in the Official Journal of the European Union.

In assessing means derived from social security payments made in non-EU currencies, the exchange rate for each currency is obtained by averaging the exchange rates for the last day of each month in the preceding quarter. The resulting average is converted to IR£ using the standard euro/IR£ conversion factor. In assessing means deriving from foreign pensions, account is taken of the rate of exchange applicable at the date of the last increase in foreign pensions or the rate for subsequent quarters if that is more beneficial to the pensioner. In this way, applicants are assured of the most beneficial treatment when their entitlement is being reviewed.

Under social welfare legislation decisions in relation to claims must be made by deciding officers and appeals officers. These officers are statutorily appointed and I have no role in regard to making such decisions.

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