Dáil Éireann díospóireacht -
Tuesday, 11 Dec 2001

Vol. 546 No. 3

Written Answers. - Pension Provisions.

Jim Higgins

Ceist:

37 Mr. Higgins (Mayo) asked the Minister for Social, Community and Family Affairs the number of non-contributory old age pensioners and non-contributory widows pensioners whose pensions have been reduced as a result of receiving British pension entitlements; the total amount reduced in 2001; and if he will make a statement on the matter. [28558/01]

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

There are more than 106,000 pensioners receiving an Irish non-contributory old age or widowed person's pension. Of these, some 10,200 – 10% – also receive a British retirement pension. The British pension rates in these cases are less than the maximum rate of non-contributory pension payable in this country, hence the people concerned have an entitlement to Irish pension to, in effect, top up their British pension to the level of Irish non-contributory pension. Once awarded, the rate of Irish non-contributory pension payable to people with British pensions has to be adjusted for periodic changes in the rate of their British pension or changes in its value by reason of exchange rate movements. In this regard, there is a legal obligation on pensioners to notify the Department in the event of changes in their means for whatever reason.

Pensions are reviewed by my Department as part of its ongoing review and control programme. The current review arose in the context of implementing improvements introduced in the 2000 budget in the assessment of capital for non-contributory old age and survivor's pensions. This involved the exemption of the first £10,000 or 12,697 of capital for pension purposes and was of significant benefit to some 23,000 pensioners. This figure included some 7,000 old age pensioners who, in addition to capital, had means from other sources – principally British retirement pensions – and the current value of such pensions had to be taken into account. This necessitated a complete review of these particular cases.

In this context, some 6,414 pensioners with British pensions have had their Irish old age non-contributory pension entitlement re-assessed so far this year – up to the end of November. Of these, 3,560 pensioners – 55% – have had their pensions reduced due to increases in their means; 127 pensioners – 2% – had their pensions withdrawn as their means exceeded the statutory limits for entitlement; 2,433 pensioners – 38% – experienced no change and a further 294 pensioners – 5% – received an increase in their Irish pensions. The average weekly reduction was £14.00 or 18.00 for the cases involved.

In addition, in the year 2000, approximately 2,000 people who were in receipt of widow(er)'s non-contributory pension were reviewed as part of the implementation of the improved capital means disregards introduced in the budget that year. Approximately 305 or 15% of these widowed people experienced a rate reduction as a result of increases in their means, of whom 146 had income from a British retirement pension. The impact of the review was less significant in the case of widowed persons as their means had been recently reviewed in 1999. The remaining 1,700 widowed people reviewed in 2000 either remained at the same pension rate, or received an increase in their pension as a result of the improvement in capital means assessment rules.

More generally, it is open to any pensioner to request a review of their pension entitlement at any time in the event of a reduction in their means for any reason. Where such a review results in a change in pension rate, the pensioners concerned have the normal right of appeal to the social welfare appeals office.

Under social welfare legislation, individual decisions relating to claims are made by deciding officers and appeals officers. These officers are statutorily appointed and I have no role in regard to making such decisions.