Dáil Éireann díospóireacht -
Wednesday, 17 Apr 2002

Vol. 552 No. 1

Written Answers. - Farm Retirement Scheme.

Jack Wall

Ceist:

127 Mr. Wall asked the Minister for Agriculture, Food and Rural Development the reason a person in receipt of a farm retirement payment has deductions taken from the payment when there is an increase in a spouse's old age pension; and if he will make a statement on the matter. [10989/02]

Minister for Agriculture, Food and Rural Development (Mr. Walsh): The type of situation described arises where the person in receipt of the early retirement pension entered the scheme under the joint management arrangement.

Someone who enters the scheme in joint management is someone who, though involved in the management of the land that is being transferred, does not own some or any of it. A younger spouse or partner will often apply under the joint management arrangement because he or she can draw down the pension for longer than the other spouse or partner who is the actual owner of the pension lands. A joint management application can also happen when the applicant himself or herself does not own enough land to make up the maximum area of 24 hectares on which the pension can be paid, and brings in some other land owned by a spouse or family member.

It is a provision of the EU regulations governing the early retirement schemes that any national retirement pension that a beneficiary is or becomes eligible for must be offset against the early retirement pension. In joint management cases, since eligibility for the early retirement pension is based partly or entirely on lands that the applicant himself or herself did not own, any national retirement pension that either party qualifies for must be offset against the early retirement pension.

As the gross amount of early retirement pension is fixed, any increase in the rate of old age pension, such as that granted in the 2002 budget, results in a reduction in the net amount of early retirement pension payable.