Séamus Kirk (Louth, Fianna Fail)
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Question 305: To ask the Minister for Social and Family Affairs if pensioners are facing bank charges as a result of opting for pension payments by electronic transfer; and if he will make a statement on the matter. [13420/05]

Séamus Brennan (Dublin South, Fianna Fail)
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The overall aim of my Department's payment delivery policy is to ensure that the most modern and widest range of payment methods are available to my Department's customers. Current payment methods include payment at post offices by means of a pension order book, electronic or manual post draft issued to the customer's designated post office each week, payment by cheque to the home address of customers, and direct payment to customers' bank or building society accounts by electronic fund transfer.

Customers opting for a particular payment method do so on an entirely voluntary basis having regard to their own circumstances and particular needs. Some 59% of customers receive payment through their local post office, 10% are paid by cheque through the postal system, mainly short-term schemes, and 31% receive direct electronic payment through their bank or building society account. An Post provides a direct payment option to Post Office Savings Bank accounts which, however, require a seven-day advance notice of withdrawal.

Bank charges which may arise for customers availing of the direct payment option are a matter for each customer having regard to their personal banking arrangements. It is understood, however, that some financial institutions offer special facilities to elderly persons involving free banking or reduced banking charges.