Vol. 547 No. 1
820 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs the estimated cost of applying to the assessment of persons seeking eligibility for pre-retirement allowance the same rules for valuing savings as are applied to non-contributory old age pension assessments; and if he will consider making such a change. [1282/02]
The weekly value of capital is assessed in a similar manner for both old age pension and pre-retirement allowance. I understand the Deputy is referring, in particular, to the difference in the assessment of means generally, including capital, for these schemes in the case of couples. It is estimated that the cost of applying the same arrangements as applies in the case of old age pension in respect of capital for pre-retirement allowance would be approximately 0.33 million per annum. However, the difference in the assessment of means from capital must be seen in the context of the assessment of means generally for the schemes in question. In the case of old age pension, the current arrangements provide that the means of the claimant shall be taken to be one half of the total means of the couple. Where means are in excess of 7.60 per week, reduced rates of both the personal payment and the increase for a qualified adult are payable.
In the case of pre-retirement allowance, the means of a couple are halved where the spouse has earnings from insurable employment and where the spouse-partner's income from any source is greater than 76.18 per week. Increases for qualified adults continue to be payable at the full rate where the spouse-partner's income is less than 88.88 per week and at reduced rates where that income is between 88.88 per week and 196.81 per week. These provisions are similar to those which apply in the case of unemployment assistance and disability allowance.
The differences in the assessment of means for various schemes arises as a result of the fact that each scheme was developed to ensure that the needs of the various client groups were met. Any change in the method of assessment of capital for pre-retirement allowance could only be considered in the context of the assessment of means generally for this scheme and associated schemes and there are no plans, at present, to change the current arrangements.
