Written answers

Wednesday, 7 March 2007

Department of Social and Family Affairs

Pension Provisions

10:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 227: To ask the Minister for Social and Family Affairs if his attention has been drawn to the fact that people in receipt of contributory pensions who were due an extra days payment in January 2007 due to changes in the system of payments have received this payment at the 2006 rate instead of at the 2007 rate; if his Department will make arrangements for recipients to receive the difference; and if he will make a statement on the matter. [9118/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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As part of improvements announced in the Budget measures for 2006, I introduced legislation (under the Social Welfare Law Reform and Pension Act 2006) whereby all persons in receipt of State Pension (Transition) who attain the age of 66 transfer automatically to the State Pension (Contributory). In these cases, a once-off payment of an additional days pension is being made in recognition of the changeover from a Thursday payday (for State Pension Transition) to a Friday payday (for State Pension Contributory) on reaching age 66.

This legislation was implemented in January 2007 in the case of customers being paid their pension by electronic fund transfer. Customers being paid their pension by means of payable order book will have the change implemented on the 30th March next.

The rate at which the additional days pension is paid depends on the date the customer reached the age of 66, and the transfer to State Pension Contributory became effective.

In those cases where the customer reached the age of 66 prior to the 1st January 2007 (when the 2007 Budget rates became effective), the additional day's payment is based on the pension rates which applied at that time, i.e. 2006 rates. In the case of customers reaching the age of 66 from 1st January 2007 (when the 2007 budget rates came into effect) onwards, the additional day is payable at the 2007 (post-Budget) rates.

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