Dáil Éireann díospóireacht -
Tuesday, 27 Feb 1990

Vol. 396 No. 3

Written Answers. - Value of UK Pension.

Jim Mitchell

Ceist:

147 Mr. J. Mitchell asked the Minister for Social Welfare if he will clarify the position of a person (details supplied) in Dublin 15 who is partly on a small UK pension and partly on an Irish non-contributory pension, the amount of the latter being determined by the value of the former; if his attention has been drawn to the fact that fluctuations in the exchange rate have greatly reduced the value of the UK pension but, because of a three month rule in his Department, no compensating adjustment will be made on his Irish non-contributory pension until three months have elapsed since the last assessment; if, in view of the hardship involved in the case the readjustment will be back dated to take account of earlier exchange rate changes; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

The person concerned was awarded a non-contributory old age pension at the weekly reduced rate of £27.10 from 13 October 1989. This is the rate of pension appropriate to a married pensioner with weekly means of £36.22.

The means calculation in this case took into account the payment of UK retirement pensions to the person concerned and his wife. The exchange rate used to convert the UK pension to Irish pounds was £1.15. This rate is set by the European Commission and applied to all pensions processed in the December quarter involving a Sterling-Irish pound conversion. This rate represents an average exchange rate between the Irish pound-Sterling and obviates the need for individual conversions. The corresponding exchange rate for the July-September quarter was £1.19 — use of this earlier exchange rate would not affect the overall amount of means assessed in this case.

A social welfare officer of the Department has been asked to review the means of the person concerned. Following the review, the most recent exchange rate of £1.11 — applicable from 1 January 1990 — will be applied to the UK pensions of the person concerned and his wife. Providing that there has been no increase in the UK pensions in question or any other increase in means, an increase in old age non-contributory pension may be due to the person concerned. He will be advised shortly of the outcome of this review.