Dáil debates

Thursday, 9 March 2006

Social Welfare Law Reform and Pensions Bill 2006: Report and Final Stages.

 

12:00 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)

My colleague, Deputy Penrose, has made many points on my behalf and these were raised on Committee Stage.

I refer to the case of a gentleman in receipt of a small occupational pension. His wife is currently in receipt of the non-contributory State pension. His occupational pension means he exceeds the income limit for the fuel allowance. It also reduces his wife's non-contributory pension by €25 per week. He regards this as a double assessment which is unfair.

On the issue of disregards, I welcome the increase in the capital disregards but this does not impact on the occupational pension. If the man dies, his occupational pension dies with him and his wife will no longer receive it. However, an anomaly exists. If a pensioner couple have, for example, capital of €56,000, and one person dies, the spouse will still be allowed access that capital. The anomaly is that of capital versus income and the small occupational pension can be a significant disadvantage as opposed to having capital.

Under the earnings disregard this gentleman's wife would be allowed earn €100 per week before her pension would be affected but she is very ill with cancer and cannot work. If the man was in receipt of a non-contributory State pension, his wife's earnings would not be used to reduce his pension. His occupational pension is used to reduce his wife's pension. These anomalies need to be examined. I ask the Minister to consider these points and come back to the House with proposals to deal with these issues which seem to be unfair.

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