Government officials have estimated that some 5,000 pensioners could have their social welfare payments affected if Special Savings Incentive Accounts (SSIA) are included in assessments for welfare benefits.
An initial examination by officials in the Department of Social and Family Affairs has indicated that it would not be "enormously expensive" to change eligibility rules in order to disregard SSIA assets.
The Minister for Social and Family Affairs, Mr Brennan, has said he is sympathetic to changing these rules and is due to bring proposals to Cabinet shortly.
In assessing means for social welfare, officials take account of any income the person may have, together with the value of capital and property. Capital may include SSIA funds, stocks, shares and money invested in a bank or building society.
A single pensioner with capital of up to €20,315.80 qualifies for a full pension while a single pensioner with capital of up to €68,565.84 qualifies for a minimum pension.
These amounts are doubled in the case of married pensioners.
Officials estimate that while there are around 15,000 pensioners within this threshold, less than half are likely to have SSIA accounts.
If income from the Government sponsored savings accounts were included, around 5,000 people would receive reduced pensions.
The figures are an estimate as access to SSIA-related information is restricted under data protection rules.
While the Minister has said he is sympathetic to changing eligibility rules, this process could be hampered by a number of difficulties.
It would be the first time the Government will have distinguished between different forms of capital when taking welfare eligibility into account.
Officials will also have to consider whether SSIA income is disregarded when the accounts mature, or for a set period of time afterwards.
The Government will be acutely aware of the political difficulties caused by including SSIA funds in welfare eligibility, as the funds could also affect eligibility for medical cards and education grants.
Even though overall numbers affected are likely to be limited, it will be keen to avoid any political difficulties which can be resolved through a relatively modest sum of money.
