Dáil Éireann díospóireacht -
Wednesday, 29 Nov 2000

Vol. 527 No. 1

Written Answers. - Pension Provisions.

Frances Fitzgerald

Ceist:

122 Ms Fitzgerald asked the Minister for Social, Community and Family Affairs the amount it would cost to pay those who applied late for their pensions; and the arrears owing to them in full in the years 1995-2000. [27918/00]

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

Full arrears are payable on foot of late claims for the old age contributory pension, retirement pension and widow(er)'s contributory pension in the case of claims which are not more than 12 months late. Additional arrears are payable on a proportional basis in the case of claims which are delayed beyond 12 months. Further payment of pension may be made, up to the level of full retrospection, where the delay was due to incorrect information given by the Department, where illness or a force majeure prevented a person from claiming earlier or where the person is suffering current financial hardship.

These arrangements apply to contributory pension claims made on or after 1 January 1997. In addition I obtained Government approval for once-off payments to contributory pensioners who made late claims prior to 1997. Arrears totalling £9.4 million have been paid to some 5,700 such pensioners who made late claims prior to 1997. The payment of full arrears to all late pension claimants would give rise to a once-off cost estimated at £54 million. In addition, there would be on-going annual cost of £3 million. Separate costings of the amount of arrears in respect of the years 1995 to 2000 cannot be readily derived but an indicative figure would be £20 million.

I believe that the arrangement which I have made since coming into office in relation to the late claims issue represent a reasonable and fair response to this problem.