SOCIAL WELFARE officials have identified up to 15,000 older people who are receiving State pension payments in excess of their entitlement.
An internal “fraud and error study” by the Department of Social and Family Affairs found that close to 15 per cent of claimants were being paid too much, mainly because they were also in receipt of the British pension.
Significant numbers of others had savings, assets or weekly income in excess of the means-test threshold for the State pension payment they were receiving.
A total of almost 100,000 are in receipt of the basic State pension, worth up to €228 per week.
The study, obtained by The Irish Times, involved an analysis of just over 1,000 cases nationwide, which is considered a national sample.
As a result, almost 15 per cent of payments were reduced, while 3 per cent were either suspended or terminated. A further 3 per cent had their payments increased.
The report notes a large proportion (65 per cent) of overpayments occurred because recipients received increases in British pensions, which in turn should have reduced their entitlement to a State pension.
The proportion of overpayments linked to British pensions was highest in the northwestern and western regions. This, the report states, reflects the high numbers of people who emigrated from these areas in the 1950s and 1960s and returned in later years.
The report indicates that the monitoring of these increases had not been taking place on an annual basis due to “resource constraints”.
Other overpayments were due to pensioners having capital in excess of the means threshold (15 per cent), a farm in excess of the stated valued (6.5 per cent), US pensions (3 per cent) or other earnings (2 per cent).
Overall, the survey resulted in an average reduction of around €30 a week for those being overpaid.
There is an obligation on welfare recipients to notify authorities of any increases in their means.
While the report notes “client errors” were responsible for most overpayments, it acknowledges that officials were also to blame.
The study found that errors were “partly attributable to deficiencies in meeting our obligation to pro-actively engage with customers by informing them of their obligations to notify the department of changes in their means, or our failure to review the 9,000 BRP recipients on an annual basis ”.
Steps will be taken to address the problem, the report notes. For example, the move to a more modern computer assessment system will allow for the automatic correction of those in receipt of UK pensions.
A working group will be established to control areas where there is a high risk of overpayments, as well as reviews of pensioners who are in receipt of other pensions.
In addition to overpayments, the report found that about 3 per cent of pensioners were being underpaid due to changes in their financial circumstances.
A person may receive the State pension if they are aged 66 or over, do not qualify for a State contributory pension and pass a means test for assets, savings and other earnings.
The means test varies depending on personal circumstances. In general, the payment decreases if a recipient has, for example, savings and investment worth in excess of €20,000.
The Government is trying to hit its target of recouping about €500 million in fraud and other control measures. So far this year the Government has saved a total of €228 million. This includes €45 million from pension claims, along with €38 million in child benefit payments and €30 million from reviews of the jobseekers’ allowance.
