Written answers

Thursday, 17 April 2008

Department of Social and Family Affairs

Pension Provisions

5:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 379: To ask the Minister for Social and Family Affairs if, in view of the weakening currency, in particular the sterling and the US dollar and the number of recipients of pensions from the UK and USA, a more realistic figure will be taken when assessing those pensions as means or if his Department will amend their currency conversion formula for assessing means on a more regular basis to reflect the actual means received by people; and if he will make a statement on the matter. [14096/08]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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My Department is aware of the appreciation in the exchange rate of the Euro against both Sterling and the US Dollar. In relation to Sterling my Department uses the conversion mechanism provided for under Article 107 of Council Regulation (EEC) No. 574/72 on Social Security for Migrant Workers when assessing means deriving from payments received from EU Member States (including U.K.) which do not form part of the EMU currencies. The exchange rates for converting Sterling and other non-EMU currencies are published quarterly in the Official Journal of the European Union.

Under this mechanism the Sterling conversion rate used when assessing new claims for means testing purposes is derived from the average of the daily exchange rates in the first month of a quarter. This rate is then used in all conversions during the course of the succeeding quarter. Alternatively the conversion rate applicable to the next succeeding quarter is used if it is more beneficial to the customer. When reviewing customers who are in receipt of British pensions the exchange rate used to convert Sterling is the rate applicable to the second quarter (i.e. the quarter in which the British pension increase occurred) or the third quarter if that is more beneficial. A similar conversion mechanism is used in determining the exchange rate for converting the US Dollar to the Euro. In this case the Dollar conversion rate used in the means testing of new claims is the average of the daily exchange rates in the three months of the previous quarter.

When reviewing customers who are in receipt of US Pensions the exchange rate used to convert the dollar is the rate applicable to the first quarter (i.e. the quarter in which US pensions increase) or the second quarter if that is more beneficial.

Currently there are approximately 8,900 customers of the State Pension (Non Contributory) scheme who are also in receipt of a British Retirement Pension with a further 600 customers in receipt of a US Pension. My Department does not generally review these pensioners specifically because of movements in the exchange rate. However it is open to any pensioner who believes they may be entitled to an increase in the rate of their State Pension (Non Contributory) payment to seek to have their means reviewed.

It should be noted that changes to the value of a British or US pension due to currency fluctuation may well be offset by annual increases to the rate of those pensions that have yet to be included in the assessment and consequently the customer's State Pension (Non Contributory) payment may be unchanged or even reduced as a result of a review. In this regard the Department is aware that the British Retirement Pension (including graduated pension rates) has been increased by 3.9% effective from the 7th April 2008.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 380: To ask the Minister for Social and Family Affairs if he will reconsider the means assessment of a person (details supplied) in County Mayo in view of the current value of Sterling. [14097/08]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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A Widower's Non Contributory Pension is a means tested payment payable to a widow or widower whose income falls below a certain limit and who does not satisfy the contribution conditions for Widowers Contributory Payment.

This customer applied for Widows Non Contributory Pension on the 15th of December 2007. Following an assessment of her means she was awarded a reduced rate Widows Non Contributory Pension of €20.30 per week from the 4th January 2008.

A Deciding Officer has now reviewed the customer's means based on the sterling exchange rate applicable to the second quarter of 2008 and has determined that she is entitled to a higher rate of pension of €27.80 per week from 11th April 2008. The person has been informed in writing of the revised decision.

If the person is dissatisfied with the revised decision she has the right to appeal to the Social Welfare Appeals Office.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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Question 381: To ask the Minister for Social and Family Affairs his policy on the screening of submissions to his Department as part of the public consultation for the Green Paper on Pensions; and if he will make a statement on the matter. [14197/08]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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The Green Paper on Pensions was published on the 17th October 2007, beginning a period of consultation on our pensions system. This consultation process will continue until the end of May 2008 and work will then begin on developing a framework for future pensions policy.

To date, over 130 written submissions have been received by my Department and can be viewed on the dedicated website — www.pensionsgreenpaper.ie. In addition, my Department hosted six regional seminars around the country to gather people's views on the key issues of concern to them. A comprehensive report will be drawn up on the consultation process and the views expressed through the written submissions and the seminars.

Correspondence received by the Department, labelled by the authors as Green Paper submissions, but which, for example, are queries about personal circumstances, are not categorised as submissions but are dealt with by my Department through its usual channels. In addition, items of personal correspondence are not deemed to be a submission. Finally, names of persons or organisations are usually removed from people's submissions in order to maintain anonymity.

I am confident that the consultation process has been an open and inclusive one and that all those who wished to make their views on pensions known have had the opportunity to do so.

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