Vol. 541 No. 2
788 Mr. Ring asked the Minister for Social, Community and Family Affairs the number of people who have had a reduction in their pension as a result of the increase in the value of sterling for the year 1999-2000 and 2000-2001 to date; the saving this has created for the exchequer; and if he will make a statement on the matter. [21418/01]
823 Mr. McGrath asked the Minister for Social, Community and Family Affairs the number of non-contributory pensioners from his Department who have had their partial pensions reduced further due to the relative strength of sterling against the punt; the savings to his Department from these pension reductions; if pension amendments were awarded by his Department when the currency differences were in the opposite direction; and if he will make a statement on the matter. [22238/01]
I propose to answer Questions Nos. 788 and 823 together.
There are more than 111,000 people receiving support through an old age (non-contributory) pension or widow/er's (non-contributory) pension from my Department, at an aggregate cost of over £472 million in 2001 and 10,300 of these people are receiving this pension as a supplement to their British retirement pension income.
In determining entitlement to old age (non-contributory) and widow/er's (non-contributory) pension, the Social Welfare Acts specify that account must be taken of all income, including British or other pensions, for means assessment purposes. Under this legislation, pensioners are required to notify my Department of any change in circumstances which might affect their pension entitlement. Where they do not do so the result is that they receive higher amounts of Irish pension than they are entitled to. The value of British retirement pension for Irish-resident recipients has increased in recent years directly through increases in rates of payment and indirectly through a beneficial sterling rate relative to the Irish pound.
In the context of reviews of pension entitlements British retirement pension income is assessed for means purposes using the sterling to euro rate of exchange either at the date of the last increase in British pension or the rate of exchange in subsequent quarters, whichever is most beneficial to the pensioner. Because there would be a number of factors in the reviews giving rise to changes in rates of pension it is not possible to quantify precisely the number of pensioners whose pension is altered as a result of the change in the value of sterling nor the net savings resulting from currency changes.
Any pensioner who experiences a revised decision on their entitlements have the right of appeal to the social welfare appeals office. It is also open to them at any stage to request the Department to review their means if their circumstances change, eg, if the value of their other income drops.
