Mr. John McKeon:

The study on the non-contributory State pension also addressed the reasons. The purpose of the control survey was to inform our control activity in specific schemes and provide us with an estimate of the overall levels. The information from that survey showed that the risk areas were people over 80 years of age. In general, their circumstances had changed since they were awarded their pensions when they were 65 and they had not advised the Department of that change. It might seem strange that someone who qualified for a means-tested payment when he or she was 65 somehow has more money at 80, but it happens. It can happen because, for example, people inherit property or live in a household where someone else has passed away and they now get money but they have not told the Department about it. When we then undertake a control review, we find out that they may have more means than were disclosed when they initially put in their claims, giving rise to overpayments. Our approach is to behave reasonably in recovering overpayments. We agree repayment schedules with people, which can be low in weekly terms but which we hope will recover the full amount over time.

In terms of changes going forward, the survey will inform the cases that we pick for review each year. Every year, we undertake approximately 10,000 routine reviews outside the control reviews of the non-contributory State pension. Obviously, we cannot review all 100,000 people on that payment every year. Instead, we try to pick out specific cases. We look at and contact the people over 80 years of age who were close to their means level when they originally got the pension. We also send out reminder letters to people advising them that, if their circumstances have changed, they should tell us.

What often happens in these cases is that the estate ends up paying the amount. The Social Insurance Fund and the Department are preferred creditors when estates are being wound up. If someone ends up with much more money in a bank account at the time of his or her death, we will be made aware of it and will recover the money from the estate. That could be a shock to the family.