Vol. 500 No. 1
142 Mr. Ring asked the Minister for Agriculture and Food the number of people in receipt of the farm early retirement scheme who incurred a reduction in their January 1999 payment; and the total amount of money withheld from recipients due to the punt devaluation. [3302/99]
The rate of pension paid to participants in the early retirement scheme was designated in ECUs up to the end of December 1998 and since that date in euros. The amount of pension payable in euros is converted to punts at the rate which was set at 1 January 1999 and this is 5.055 per cent lower than the rate at which ECUs were converted to punts for the pension scheme. As a result, pensions under the scheme have been reduced by 5.055 per cent from 1 January 1999.
The change in the exchange rate affected all 7,982 participants in the early retirement scheme. The total reductions in pensions payments to participants in January 1999 due to the introduction of the euro was £272,078.97.
Full compensation will be payable in 1999 for the reduction in 1999 pensions to participants who joined the scheme prior to 1998. My Department is in consultation with EU Commission for clarification on the issue of compensation for participants who joined during 1998. Approval of the EU Commission is necessary before compensation will be paid.
