Dáil Éireann debate -
Tuesday, 1 May 2001

Vol. 535 No. 1

Written Answers - Farm Retirement Scheme.

Michael P. Kitt

Question:

219 Mr. M. Kitt asked the Minister for Agriculture, Food and Rural Development if he will review the early retirement from farming scheme in view of the increases for such applicants in non-contributory old age pension and due to the number of applicants who will have to remit overpayments in the future due to budget increases in years to come. [11898/01]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The 1994 scheme of early retirement from farming and its successor, which was introduced in November 2000, are both governed by EU Council regulations. Both regulations allow the early retirement pension to be paid only as a supplement to a national retirement pension. This means that any national pension a participant qualifies for must be deducted from his or her early retirement pension. As national pensions increase, either after annual budget increases or because of some change in an individual's circumstances, the rate paid under the early retirement scheme has to be reduced correspondingly. The rate of pension paid under the 1994 scheme is the maximum that the regulation allows.

In the case referred to, an overpayment happened because my Department had not been informed that the participant was receiving a national pension as well as an early retirement pension. There is an onus on participants in the schemes to notify my Department when they first get a national pension and, subsequently, when it goes up because of budget changes or other reasons. This helps to avoid overpayments of early retirement pensions which, as in this case, my Department always has to recover.

Farmers can join the early retirement scheme from the age of 55 years. Unless they have a national retirement pension other than the old age pension, it is possible for them to draw down the full pension for a full ten years without any reduction.