Dáil Éireann debate -
Wednesday, 20 Mar 2002

Vol. 550 No. 4

Written Answers. - Farm Retirement Scheme.

Michael Creed

Question:

212 Mr. Creed asked the Minister for Agriculture, Food and Rural Development if he will reconsider the circumstances whereby a person (details supplied) in County Cork, who is a beneficiary under the early retirement scheme from farming, is having their pension reduced on a monthly basis by the amount of their spouses contributory pension entitlement, which refers to pension contributions paid in respect of off farm employment; the circumstances surrounding a recent announcement by his Department whereby certain pension payments are not deductible from the early retirement scheme from farming; and if he will make a statement on the matter. [8521/02]

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

The person named is a participant in the early retirement scheme introduced under EU Council Regulation 2079/92, which she entered in joint management with her husband.

It is a provision of the Council regulation that any national retirement pension to which a scheme participant, or his or her spouse-partner in a joint management situation, becomes entitled must be offset against the early retirement pension. The regulation makes no distinction between contributory or non-contributory national retirement pensions. The husband of the person named was awarded a contributory old age pension from 5 June 1996 and this was offset against the early retirement pension from that date.

The recent announcement related solely to the manner in which the rule mentioned above was to be applied to the national widow's or widower's pension under the new early retirement scheme introduced in 2000. The European Commission agreed that these pensions should not be regarded as national retirement pensions until a recipient reached the normal national retirement age of 66 years. Once these pensioners reach the age of 66, however, the amount of their early retirement pension must be reduced by the amount of widow's or widower's pensions that they receive. This was already the position under the previous early retirement scheme.