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Lump sum plus uprated pensions for the Spanish; only uprated pensions for the rest
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Letter from Gibraltar Government to Spanish pensioners sets out the options for them
In his New Year message, Joe Bossano says that a married pensioner couple with a frozen pension of ?71.70 a week since 1988 could amount to as much as ?28,000, if Gibraltar pensioners were offered a lump sum in compensation as Spanish pensioners are being offered.
Indeed, Spanish pensioners are being offered a lump sum and also the 65.2% increase from April, which Mr Bossano describes as 'a legal right'.
The chairman of the La Linea pensioners association Alpeg said what a good deal they had got when speaking on Spanish radio. He gave 12,000 euros plus the upgraded pensions as an example of the kind of payments they could expect.
BACK MONEY
The amount that could accrue is dependent on the contributions made, and since most Gibraltarian pensioners are probably fully paid, they could expect to receive the maximum in 'back money', if such an offer was available to them as well.
By way of indication only, the Spanish pensioners were told by the Gibraltar Government in October that about 6,200 euros would be the average lump sum but emphasised that while some pensioners will receive more than this, others will receive less.
Alpeg in La Linea say they have been receiving about 300 requests for help daily from La Linea pensioners who have now received a letter informing them of what is due to them.
The Gibraltar Government letter sent to the Spanish in October said: "If you accept this offer, then, in addition to the lump sum payment you will receive your future payment entitlement from a scheme established for that purpose by the United Kingdom Government."
The latter added that "starting in April 2007 this scheme will make future payments to you at a rate equivalent to your former Gibraltar pension, increased to what it would have been had it been uprated annually in line with Gibraltar inflation since 1989. Thereafter, it will be uprated annually in line with UK inflation. The Unted Kingdom Government will fund and make these payments."
CHOICE
The Spanish pensioners were written to individually by the Gibraltar Government.
The Spanish are given a choice:
a) To accept the offer of the lump sum and the uprated pensions from the UK, or
b) To continue to receive a pension from the GSIF but NOT a lump sum payment as well,
hence "the value of the overall package you receive will almost certainly be lower..."
The pensioners were also told: Please note that the lump sum, but not the future payments, will be paid to the estate of a pensioner who formally accepts the offer in writing when it is made but who dies before the full payment is made."
Clearly most Spanish pensioners are opting for the 'lump sum plus uprated pensions' offer .
The letter sent by the Gibraltar Government in October, through the Department of Social Security, is being considered by the Gibraltar Pensioners Association who have acquired a copy of it.
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