Farm pensions decision reversed

Minister for Social and Family Affairs Eamon Ó Cuív has reversed a decision by his predecessor Mary Hanafin to withdraw pensions from some farm spouses.

Mr Ó Cuív announced today that he was rescinding the decision to withdraw or reduce contributory pensions to farm women who had paid PRSI retrospectively.

The announcement followed a review by his officials and legal advice from the Attorney General.

The decision was welcomed by the Irish Farmers' Association (IFA) and Labour, but comes just months after Ms Hanafin declared that the granting to pensions to the women was an administrative error.

In 2008, the Government agreed to award contributory pensions to farmers' spouses if they made sufficient retrospective PRSI payments.

Hundreds of spouses - mainly women - availed of the service and received a contributory pension. Last January, however, it announced that this decision was being reversed.

Recipients of the pension received letters stating that their pension entitlements were being disallowed, as they did not in fact qualify for the scheme. Pension payments immediately ceased, and recipients were instructed by the Government to pay back any money they had already received.

Some of those affected staged a sit-in in the department's offices in Dublin last month and the Joint Oireachtas Committee on Social and Family Affairs expressed opposition to the move.

Announcing the U-turn today, Mr Ó Cuív said the decision would be backdated to the date on which State pensions were withdrawn or reduced and all arrears due would be paid. Overpayments will no longer be sought.

Applications received or applications refused before December 31st, 2009 would be dealt with under the legislation at that time. This process would be completed within the next four weeks.

Applications received from January 1st, 2010 would be processed under current legislation.

"I am delighted that, based on further legal advice, it has been possible to make this decision. I am aware of the distress this issue was causing and I am pleased that the matter has now been brought to a satisfactory conclusion," the Minister stated.