Dáil Éireann díospóireacht -
Wednesday, 30 Jan 2002

Written Answers. - Farm Retirement Scheme.

Willie Penrose

Ceist:

291 Mr. Penrose asked the Minister for Agriculture, Food and Rural Development the way in which the recent transition from punts to euro will affect people in receipt of the early retirement scheme pension; if the entitlement of a person (details supplied) in County Westmeath has reduced since this person first received same approximately seven years ago; and if he will make a statement on the matter. [1547/02]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The transition from Irish pounds to euro will have no effect on the amount payable to participants in the early retirement scheme. Pensions paid under the 1994 scheme have been converted from Irish pounds into the exact equivalent in euro using the six-digit conversion rate and rounded to the nearest cent. No conversion was necessary in the case of participants in the scheme which was introduced in November 2000, because their rates of payment were already denominated in euro.

In the case of the person named, there have been two occasions on which his pension under the early retirement scheme was reduced. The first was in January 1999 when the euro was introduced. This resulted in a reduction of 5.05% in the rate of pension. A three-year scheme of compensation to reimburse participants was approved by the European Commission and the third payment will be made in the coming months. All participants who were in the scheme before January 1999 were affected by this reduction and have received the compensation.

The person named also had his pension under the early retirement scheme reduced in January 2000 when he qualified for the contributory old age pension. The EU Council regulation under which the early retirement scheme was introduced requires that the pension payable to a participant must be reduced by the amount of any national retirement pension to which he or she is entitled.