Dáil Éireann debate -
Tuesday, 16 Oct 2001

Vol. 542 No. 2

Written Answers. - Farm Retirement Scheme.

John McGuinness

Question:

225 Mr. McGuinness asked the Minister for Agriculture, Food and Rural Development if he will examine a claim by a person (details supplied) in County Kilkenny to determine whether this person is receiving full entitlement; the way in which overpayments occurred; if the applicant is obliged to pay tax on this benefit; and if full allowances have been granted for all dependants. [23835/01]

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

The amount of early retirement pension payable is based on the amount of land released into the scheme by a retiring farmer. The person named released 32.98 hectares of land into the scheme which entitled him to the maximum rate of pension, £9,509.84, 12,075. It is a requirement of the early retirement scheme and of the Council regulation under which it was introduced that any national retirement pension to which a participant becomes entitled must be offset against his or her early retirement pension.

The person named became entitled to the non-contributory old age pension from 2 January 1998 and my Department made adjustments to his early retirement pension on the basis of the information received at that point. On 11 June 2001 my Department received notification from the Department of Social, Community and Family Affairs of variations in his old age pension entitlements over the intervening period, and appropriate adjustments were made to his early retirement pension which resulted in the recoupment from his July 2001 payment of a small net overpayment of £11.43. He is now receiving his full entitlement from my Department. The early retirement pension is subject to deduction of the appropriate level of income tax as notified to my Department by the Revenue Commissioners.