Dáil Éireann díospóireacht -
Tuesday, 23 Mar 1999

Vol. 502 No. 3

Written Answers. - Pension Provisions.

Seán Ryan

Ceist:

470 Mr. S. Ryan asked the Minister for Social, Community and Family Affairs the reason bilateral agreements between EU countries are taken into account for the provision of old age pension and not in the provision of the living alone or the over 80's allowances. [8294/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The EU provisions on social security do not replace the national social security systems of the 15 member states by a single, standardised European system. Rather, they perform a co-ordinating role between these different systems and establish common rules and principles which have to be observed by all national authorities.

These precepts are reflected in the EU regulations on social security, Nos: 1408/71 and 574/72, which contain detailed provisions on the application and implementation of social security schemes throughout the European Union and apply to employed persons, self-employed persons and to members of their families moving within the Union.

Old age pensions are among the most important social security benefits covered by the EU regulations. These provide, for instance, that a person who has been insurably employed in more than one member state will have his/her pension calculated according to the insurance record in each country – the rate of payment corresponding, on a pro rata basis, to the periods of insurance completed there. This pro rata principle also applies to any increases paid in respect of the recipient's personal circumstances – for example, in the context of Irish social welfare pensions, where the over-80 increase is applicable.

The standard rate increase of £6 per week paid in respect of a person living alone – otherwise known as the living alone allowance – is not subject to this rule. This is because the increase is a contribution towards a specific contingency – namely, in acknowledgement of the extra costs incurred where a person resides alone.

I understand the Deputy is also inquiring as to why a person resident in Ireland and in receipt of a British social security pension, is not entitled to a living alone allowance or the over-80 increase from my Department.

Both of these payments are particular features of our national (social welfare) pension environment. They are an integral part of the Irish pension system and are designed to cover specific contingencies. As such, they have no applicabilityvis-à-vis pension payments made under the social security regimes of other EU member states or countries with which Ireland has bilateral agreements. This is fully in accordance with the EU regulations which allow all member states to decide which benefits are granted and under what conditions.

In the case of the living alone allowance, it is worth repeating, as I stated in my reply to Question No. 135 of 3 March last, that failure to qualify for this allowance does not preclude low-income pensioners from qualifying for the free schemes, provided that they are in receipt of a qualifying payment – in this instance, for example, from another EU member state – or that they are age 66 or over, satisfy a means-test and are living alone or with certain categories of excepted people.

Finally, I must state that I do not consider the extension of the over-80 and living alone increases to foreign social security pensioners resident in Ireland warranted at this time. I would point out to the Deputy that any such measure is likely to have significant budgetary implications.