Pensions could be ‘swept away’ under Fair Deal scheme

Farmers are being warned that their pensions could be “swept away” by nursing homes under the Fair Deal scheme.

Galway IFA farm family chair Anne Mitchell told an IFA meeting in Athenry last week that if you have a pension, 80% of it goes towards nursing home care.

She said that she recently dealt with a man who had four pensions; his own private pension that he had paid into, a pension from a job, part of his deceased wife’s pension and the widower’s pension.

“That means if that man needs nursing home care, his pension, that he and his wife contributed all their working lives to, is swept away by the nursing home because it will be more than what he’s getting weekly and what he paid into,” she said.

Mitchell highlighted that the State pension is paid out as a gross payment and that it is assessed for tax at the end of the year.

“If you’re entitled to €300 a week from the State pension, you get €300 into your bank account or you collect it at the post office.

“At the end of the year, that is assessed for tax.

“So, on top of having paid your 80% to the nursing home, the 20% that is supposed to be left in your pocket could well be swept away when you do your tax return at the end of the year.

“That has never been highlighted or talked about. It’s something that’s glaringly obvious.

“The Government, the Department [of Health] and the HSE need to be challenged on it sooner rather than later,” she said.

Nursing home care

Mitchell added that only a medical professional can decide whether a person needs nursing home care.

“If you’re lonely at home, fall out with your relations, don’t like your neighbours, that won’t qualify you to get into a nursing home.

“No matter how much money you have or who much you want to pay towards it.

“You must be medically assessed as needing nursing home care,” she advised.