Séamus Brennan (Dublin South, Fianna Fail)

The issue of reassessing savings derived from means-tested non-contributory pension payments when reviewing estate cases has been discussed many times and the Department continues to study and examine the situation. Deputies have put the case that, where people with savings from their non-contributory pensions die and their estate is examined, we should find some way to disregard the block of savings which emerges when the estate goes to probate and we discover it.

When probate is taken out and the accounts of the deceased are closely examined, substantial so-called savings are often found. The last time I answered this question, I explained the policy and that there is a clawback because the amount of money in the account now shows the person was not entitled to the pension at the time. I cannot change that. An initial examination of the issue showed it was impossible to tell the difference between whether the money in the account was saved from the non-contributory pension or whether it came from some other source. The real issue is whether the money comes from another source such as a small inheritance, a gift or payments from a relative.

Ring-fencing this became a major issue. It was decided that we would not depart from the present policy until we had one about which we were very sure-footed. We continue to consider it as asked in Question No. 48.

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