Dáil Éireann debate -
Wednesday, 7 May 2003

Vol. 566 No. 1

Written Answers. - Farm Retirement Scheme.

Paul Connaughton

Question:

767 Mr. Connaughton asked the Minister for Social and Family Affairs if her attention has been drawn to the problem facing many farmers who had joined the EU farm retirement pension scheme, who have completed their time in this scheme and who have had no alternative but to apply for a non contributory old age pension; if her attention has further been drawn to the fact that for many of those pensioners who may not be entitled to a non contributory pension, their financial future is far from secure; and if she will make a statement on the matter. [11681/03]

Minister for Social and Family Affairs (Mary Coughlan)

The farm retirement pension scheme is operated by the Department of Agriculture and Food. Under the scheme, a pension is payable, subject to conditions, to a qualifying farmer who transfers his-her land to a transferee. The transfer may be by way of gift, sale or lease.

In the case of old age non-contributory pension and other social assistance schemes payable after the age of 66, no account is taken of income from the farm retirement pension in the assessment of means. However, as provided for in the EU Council regulation governing the farm retirement scheme, the farm retirement pension is reduced by the amount of any national retirement pension payable, such as old age contributory or non-contributory pension. When farm retirement pension ceases, old age pension continues in payment at the same rate as previously. If the person was not in receipt of an old age pension while he or she was in receipt of the farm retirement pension, he or she may, at any stage, apply for that pension, subject to being aged 66 or over. I understand that the Deputy is specifically interested in establishing how much income a former recipient of the farm retirement pension can have and still qualify for an old age non-contributory pension. Where a recipient or former recipient of the farm retirement pension has leased his or her land, the income from the leasing, less expenses necessarily incurred, is assessed as cash income for old age non-contributory pension. Single persons with annual means of up to €369.20 per annum, €790.40 in the case of a married person, will qualify for a pension at the maximum rate. Single persons with annual means of up to €7,675.20, €15,350.40 in the case of married persons, will qualify for a minimum pension.

Any change in the current arrangements in relation to the assessment of income of a lessor of land who was a former recipient of farm retirement pension would have implications for other categories of pension recipients and could only be considered in a budgetary context and in the light of available resources.