Old age, non contributory, pension is a means tested payment.
Under the relevant legislation, account must be taken of cash income, including pensions from other sources, in determining a person's means. When a pension is awarded, the pensioners are advised of the means assessment in each case and of their obligations to notify my Department of any subsequent change in their circumstances.
Periodic reviews of entitlement are carried out from time to time to ensure that the correct entitlement is in payment. These reviews result in pensions being increased in circumstances where the pensioner's means have reduced – for example, when savings reduce or the net income from a business is reduced – and conversely, reductions in pension occur where the persons means are found to have increased.
When carrying out reviews it is the practice to use the rate of exchange at the date of the last increase in foreign pensions or the rate of exchange in the subsequent quarters, whichever is most beneficial to the pensioner.
In the case of pensioners who are also in receipt of British retirement pensions, it would be normal to expect that the British pension would be increased periodically. In cases where such pensioners do not notify my Department of changes in their means, reductions in their entitlement from my Department are likely to result from these reviews.