Dáil Éireann debate -
Wednesday, 13 Jun 2001

Vol. 538 No. 1

Written Answers. - Farm Retirement Scheme.

Seymour Crawford

Question:

143 Mr. Crawford asked the Minister for Agriculture, Food and Rural Development the number of overpayments which have been made to participants in the EU early retirement scheme; the average overpayment; and the way in which he intends to deal with the matter. [17446/01]

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

Currently, overpayments are being recovered from the early retirement pensions of just over 1,000 participants in the scheme. The average overpayment is approximately £2,000. In the majority of cases the overpayment arose because the participant did not, as required of them by the scheme, advise my Department of the receipt of a national retirement pension from the Department of Social, Community and Family Affairs. Under the EU regulations governing both the 1994 and the new schemes, the early retirement pension is payable as a supplement to any national retirement pension to which the participant is entitled and the amount of such pension must be deducted from the early retirement pension.

Such overpayments, which are debts owed to the EU, must be recovered. Where they cannot be recovered fully by withholding future payments due to participants in the early retirement scheme, my Department is prepared to agree repayment terms that will not cause undue hardship to the people concerned. In the absence of such agreements my Department has to take other measures to recover the debts.

While the onus is on participants in the scheme to notify my Department if they or their partners in joint management are awarded an old age pension, a significant number failed to do so and this has given rise to substantial debts. Procedures are now in place to avoid such overpayments in the future. Participants are now advised three months in advance of their 66th birthday that they must apply to the Department of Social, Community and Family Affairs for both the contributory and non-contributory old age pension and notify my Department of that Department's decision. If no response is received from applicants before their 66th birthday payment of the early retirement pension is suspended pending confirmation of their entitlement to the old age pension.

A system of information exchange between my Department and the Department of Social, Community and Family Affairs has also been introduced to identify cases where a national retirement pension is in payment.