Dan Boyle (Cork South Central, Green Party)
Link to this: Individually | In context

Question 464: To ask the Minister for Social and Family Affairs if it is proposed to exempt the lump sum payments to non-contributory pensioners who had their pension withheld by the health boards, if a pensioner may deposit this money at different times in different accounts; and the way in which it is possible to determine the source of those savings in assessing means under the proposed special exemption. [20022/05]

Dan Boyle (Cork South Central, Green Party)
Link to this: Individually | In context

Question 465: To ask the Minister for Social and Family Affairs the reason for the discrimination in a case of pensioner A and pensioner B, where A is in a nursing home and gets €29,000 in back payments from the HSE which payment will be exempted by his Department from means testing, whereas B lives at home and has been saving a pension over many years accumulating €29,000, which under current regulations will be means tested. [20023/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 464 and 465 together.

The Government recently agreed the key elements of a scheme for the repayment of long-term stay charges. As I have already confirmed to the House in regard to those charged, such repayments will not impact on their current pension entitlements and I will make the necessary legislative changes to bring this provision into effect when full details of the repayment scheme have been finalised.

It will be a matter for pensioners themselves to decide what they do with any repayments received and they can, if they wish, deposit the moneys involved in any number of accounts. For means test purposes, once my Department has confirmed that such a repayment was received, an amount equivalent to that repayment will be exempt from assessment for pension purposes provided the pensioner owns capital equal to or in excess of the repayment sum. Where the pensioner's capital is less than the sum repaid, all the pensioner's capital will be exempt.

Over the period in question, my Department paid affected persons their full pension and other social welfare entitlements and had no function in the deduction of the charges made. Given the unique background to the repayments, the Government decided that receipt of the lump sums involved would not incur a tax liability or adversely affect future entitlement to health services and social welfare payments in the case of those who were charged and are still alive.

For social welfare means test purposes, other capital which a pensioner has, regardless of whether that person received a repayment or not, will continue to be assessed in the normal way. From the beginning of this month, a single pensioner with no other means will be able to save up to €28,000 without affecting his or her entitlement in any way. This figure is doubled for a couple. As a result, all pensioners will, if they wish, be able to put an enhanced sum aside without any effect on their pension.