Ireland and the UK have reached an agreement guaranteeing the continued payment of state pensions, child benefit and other social welfare payments if the UK leaves the EU without a deal.

According to the Independent.ie, a legally binding agreement has been signed by both governments, ensuring the current rights in what is known as the common travel area remains.

The newspaper reported that it is estimated that around 133,000 people living in Ireland, mainly Irish citizens, are recipients of pensions from the UK, while the Irish government pays contributory pensions to about 29,000 people living in the UK.

In addition, child benefit payments and other social welfare payments flow between the two countries.

Irish Minister for Employment Affairs and Social Protection, Regina Doherty, and the UK’s Work and Pensions Secretary Amber Rudd signed the convention at the start of the month to ensure the "reciprocity of social welfare rights and entitlements".

The deal also has to go through the formality of an approval by the Dáil Éireann.

According to the Independent.ie, Doherty said: "Under the terms of the agreement, all existing arrangements, with recognition of, and access to, social welfare entitlements will be maintained in both jurisdictions.

"This means that the rights of Irish citizens domiciled in Ireland to benefit from social insurance contributions made when working in the UK and to access social insurance payments if resident in the UK are protected."

However, there are still fears for how private pensions will be paid out after Brexit, with the Pension Insurance Corporation telling its members to open UK bank accounts to avoid loss of payments.

Irish Association of Pension Funds (IAPF) CEO Jerry Moriarty told the newspaper people that people in Ireland should still get paid as it is their legal entitlement.

"Under European Union rules, you have a right to have your pension paid into any member state, but no one has a clue how this will work out when Britain leaves the EU," he said.

Share Story: