The Department of Social, Community and Family Affairs will continue its after-death assessment of non-contributory old age pensioners' estates, but from November it will be easier for old people with limited savings to qualify for the full pension.
The changes in the assessment rates on savings will prevent some of the abuses in the past which uncovered overpayments of £1.8 million in the first six months of this year from the estates of OAPs who did not declare all their assets.
From November, however, the Department is revising the assessment rules for pensioners who will be able to have £2,000 in savings without any loss of income. On the next £20,000 the Department will assume an investment rate of 7.5 per cent and deduct accordingly and on amounts over that the rate will be 15 per cent.
A Department of Social Welfare spokeswoman said the current regulations allowed OAPs the first £200 to be unassessed, the next £375 to be assessed at a rate of 5 per cent and the balance at 10 per cent.
"The new regulations will allow pensioners with small amounts of savings to qualify for the full amount of the pension which is currently £67.50 per week," she said.
She added that the Minister for Social Welfare had indicated that he would like to see no assessment of the incomes of people over 80 years old. However, there will continue to be assessments of estates of people who have died and were claiming the non-contributory OAP.
The Irish Times, which published the report about the probate search for overpayments, was accused yesterday of sensationalising the issue of non-contributory pensions for the old.
The allegation was made by Muintir na Tire which said it feared the publicity had done nothing but raise unnecessary fears in elderly people that their pension entitlements might be at risk.
It said Muintir had worked hard to encourage elderly people to lodge their savings in financial institutions, thereby reducing the risk of attack in their homes. It feared the article would be misconstrued by pensioners.