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Cox launches investigation into alleged pension shortfall

Government is investigating after a much publicised nine percent increase in pensions fell short of the mark.

Finance Minister Paula Cox said she had received letters from pensioners querying the pension increase which took effect from August 16 this year.

Minister Cox said: "I have received letters, cards and calls of thanks from many pensioners and also a handful of letters from pensioners whose own calculations showed that their increase was about 8.8 per cent.

"Rather than speculate on what was at the root of the difference, I have asked officers in the Social Insurance Department to not only double check the specific cases that have been reported but also to double check that all system changes were absolutely accurate.

"I have had preliminary feedback that the system changes were correct but this will be checked one more time. Clearly, if anything is found to be amiss then it will be rectified post haste."

Opposition seniors spokesman Louise Jackson attacked Government for a blunder which insulted seniors as well as short changed them by coming out at 8.75 percent.

"What did they think? They were stupid or chopped liver and couldn't get a calculator and work it out?"

One senior said it wasn't so much money but the principle although she said many seniors would be affected by the difference.

The 75-year-old, from Warwick, told The Royal Gazette: "I called the pension office and she said the increase was done in Finance based on the last week of the old calculation.

"That's ridiculous as they are paid monthly.

"But it doesn't matter whether you do it by the day, week or month it's still 8.75. While she was talking I was doing the sums on the calculator."

However Ms Cox said the general response to the pension increase has been overwhelmingly positive with cards thanking Government for the increase.

Mrs Jackson also attacked Government's handling of other seniors issues including the Financial Assistance Act which is being radically amended after fears that seniors and disabled people would end up being forced to leave family homes because their aid would be cut if the total household income went above a certain point.

Government has promised to exempt those groups from the financial assistance crackdown but Mrs Jackson said the Progressive Labour Party should have listened more when the issues first came up when it was debated instead of putting people through the worry.

She said: "Why they couldn't just be more compassionate in the first place and not pass these strong arm things."