Non-contributory old-age pensioners should be told what savings they are allowed under new regulations to prevent them keeping cash in "an old shoe-box under the bed", an Oireachtas committee heard yesterday.
The committee on social and family affairs was looking into the State policy which takes money back from a deceased pensioner's estate where it is found he or she had been paid too much pension through non-declaration of means.
Deputies, however, in discussion with officials from the Department of Social and Family Affairs, queried the fairness of the system, particularly where a person had saved money out of their pension and had savings over the allowed threshold.
The committee was told that, under new arrangements next month, a single non-contributory old-age pensioner could save up to €28,000 and still receive full pension. A pensioner could save €76,000 and qualify for a minimum pension on a sliding scale.
David Stanton TD (FG) said people did save for a rainy day, and felt comfortable if they had a nest egg. He asked if it was possible to identify whether they had saved from their pension.
Paul Wilson, department principal officer, said it was not available to them to know the source of savings.
Paudge Connolly TD (Ind) said: "People should know they can have €28,000 before it affects the pension and they can put it safely in the bank. Otherwise they are making themselves targets."
Denis Moynihan, department official, said they were very anxious that pensioners were aware that they could have capital and that they not have cash at home.
Dan Boyle TD (Green) said the effect of the claw-back was death duties for non-contributory pensioners.
Chairman Willie Penrose TD (Lab) said: "This is not about people with big money; this is about the fellow with the shoe-box. That's all we're interested in. The only way is through legislation."