Refunds on way for ‘cheated’ pensioners

79,000 recipients had payments cut during recession

PENSIONERS who were left out of pocket following changes to the way their payments are calculated can finally expect to receive a refund.

Some 79,000 recipients, mostly women whose pensions were cut in controversial changes in 2012, are to get refunds of up to €30 a week.

Where an increase is warranted, pensioners will be able to have their payments backdated to March 30 last year. An extra 70 staff have been drafted in to the Department of Social Protection to help speed up the review.

Those set to benefit from the new method of assessing pensions, known as a total contributions approach, are mainly women who took time out to mind children prior to 1994. Under the new conditions, they will receive credit for time spent parenting or caring.

In response to a parliamentary question from Fine Gael TD Martin Welfare: Regina Doherty Heydon, Social Protection Minister Regina Doherty said legislation was put in place at the end of December to allow for increased pension payments to those affected. Pensioners will be contacted as soon as their review is completed.

Mr Heydon said: ‘The review of 79,000 pensioners in receipt of reduced contributory pensions is under way and increased payments can now be processed as each review is completed.

‘The minister advised me that as each review is completed, the individual would be advised of the outcome and where applicable, increased payments could be processed immediately.’

It is envisaged the first payments will be made shortly.

Mr Heydon said no pensioners will be disadvantaged following the review.

He said: ‘It is important to note that if a pensioner does not qualify for an increase, they will continue to receive their existing rate of payment.

‘No personal pension entitlement rates will be reduced as a result of this review.’

It is understood that about 70,000 of the reviews relate to people living here, while the remaining 9,000 are for pension-

‘Some lost €1,500 annually’

ers who are no longer resident in Ireland.

The department lacks complete social insurance records for some 24,000 of those who are under review . Officials are writing to them, but it could lead to delays in completing the reviews.

Mr Heydon said: ‘The department has complete social insurance records for about 55,000 where no further interaction will be required. In other cases, the department will write to pensioners with requests for them to complete the gaps in their records online or through their local social welfare office.’

Advocacy group Age Action previously estimated that some retired women are losing more than €1,500 annually as a result of the 2012 changes.

In addition, the cost of pensions is becoming an increasing problem for the Government.

In late November, the Dáil Public Accounts Committee heard that billions of euro may be needed in the near future to maintain the State’s pension fund.