Vol. 573 No. 1
102 Mr. McGinley asked the Minister for Social and Family Affairs the number of persons who have their State pension reduced due to their British pension; the way in which this deduction is calculated; and the exchange rate formula which is used in this calculation as compared with the average exchange rate for any given period. [24327/03]
There are almost 103,000 people receiving an Irish non-contributory old age or widowed person's pension. Of these, 10,700 – 10% – also receive a British retirement pension. British pension rates in these cases are less than the maximum rate of non-contributory pension payable in this country. As a result, the people concerned have an entitlement to Irish pension to, in effect, top up their British pension to the level of Irish non-contributory pension.
The rate paid in respect of Irish non-contributory pension to people with British pensions has to be adjusted to take account of changes in the rate of their British pension. In this regard, there is a legal obligation on pensioners to notify the Department in the event of changes in their means for whatever reason.
My Department has an ongoing claim review and control programme in place for all social welfare schemes, including pensions.
In the calendar years 2002 and 2003 to date, some 932 pensioners with British retirement pensions have had their non-contributory pensions reduced following claim reviews, largely as a consequence of increases in their British pensions. It should be noted that the overall income position of these pensioners has been maintained, as their Irish pension reductions arose directly as a result of corresponding increases in their other means.
While changes in exchange rates themselves do not lead to initiation of claim reviews by my Department, they must be taken into account when the case is being reviewed. For non-EMU European states, including the UK, the Department continues to use the conversion mechanism provided for under Article 107 of Council Regulation (EEC) No. 574/72 on social security for migrant workers. Under this mechanism, the conversion rate used for pensions purposes is derived from the average of the daily exchange rates in the first month of a quarter. This rate is then used in all conversions during the course of the succeeding quarter. Alternatively, the conversion rate applicable to the next succeeding quarter is used if it is more beneficial to the pensioner.
The weekly value of the British pension income expressed in euro is included in a revised assessment of their means from this and other sources. Where the revised assessment of means affects the rate of pension to which they are entitled under the legislation, a revised decision on their entitlement is given by a deciding officer. They are notified of the new decision and of their right of appeal to the independent Social Welfare Appeals Office.
