I propose to take Questions Nos. 7 and 19 together.
Over 106,000 pensioners receive an Irish non-contributory old age or survivor's pension, of which 10%, some 10,300 people, also receive a British retirement pension. The contributory British pensions are paid directly to the people concerned by the British Department of Social Security and not through my Department. The British pensions are less than the maximum rate of old age non-contributory pension payable in this country. The people concerned are therefore entitled to an Irish pension to, in effect, top up their British pension to the level of the Irish non-contributory pension. As with any other pensioners resident here, they have full entitlement to various free schemes, such as living alone and fuel allowances, depending on their age and household circumstances.
A pensioner's means from all sources are taken into account when determining the rate of old age pension. If the pensioner has a British retirement pension, the current value of that pension in sterling is first determined. The sterling value is then converted to Irish punts via euro, using the exchange rate that prevailed at the time of the most recent increase in the British pension or the rate of exchange in subsequent quarters, whichever is most beneficial to the pensioner. Once awarded, the rate of old age or survivor's pension payable to people with British pensions has to be adjusted for changes in the rate of the British pension or changes in its value as a result of exchange rate movements. Deputies are aware that it is a legal obligation on pensioners to notify the Department in the event of changes in their means.
Pensions are reviewed by my Department as part of an ongoing review and control programme. The current review arose in the context of implementing improvements introduced in the 2000 budget in the assessment of capital for non-contributory old age and survivor's pensions. That involved the exemption of the first £10,000 of capital for pension purposes, compared to £2,000 as it used to be, and was of significant benefit to 23,000 pensioners.
In reviewing means for the purpose of implementing this measure in individual cases, it was necessary to undertake a complete means review. Some 7,000 of the old age pensioners concerned had, in addition to the capital, means from other sources, particularly a British retirement pension, and the value of such pensions had to be taken into account. The Department subsequently undertook a complete review of all cases with income from similar sources. In this context, 5,600 pensioners with British pensions have had their Irish pension entitlement reassessed to date. Of these, 3,501 pensioners, 62%, have had their old age pensions reduced due to increases in their means; 112 pensioners, 2%, had their pensions withdrawn as their means exceeded the statutory limits for entitlement; 1,720 pensioners, 31%, experienced no change and a further 283 pensioners, 5%, received an increase in their Irish pensions. In the context of the reviews, British pension is assessed using the sterling to euro rate of exchange either at the date of the last increase in British pension or the rate of exchange in subsequent quarters, whichever is most beneficial to the pensioner.
It is open to any pensioner to request a review at any time in the event of a reduction of means due to currency fluctuations or for any other reason. The Department carries out 2,000 pension claim reviews routinely per year, about three-quarters of which are undertaken at the pensioners' request. Of these reviews 40% result in an increase in pension rate with a further 35% resulting in no change. The balance of 25% of these reviews result in rate reductions or cessation of entitlement in cases where pensioners have significant increases in other means. Where a review results in a change in pension rate, the pensioners concerned have the normal right of appeal to the social welfare appeals office. As Deputies are aware, under social welfare legislation individual decisions relating to claims are made by deciding officers and appeals officers. These officers are statutorily appointed and I do not have a role in making such decisions.