Elderly residents of nursing homes who had their pensions illegally deducted by the State, may now find their current pensions reduced, according to the Labour Party.
The party's spokesman on social and family affairs, Mr Willie Penrose, has called on the Government to give an commitment that any refunds to elderly residents of nursing homes will not impact on their pension entitlements.
"It would be the ultimate sick joke if pensioners . . . were now to find their current pensions reduced because the repayment might bring them over the threshold for means testing.
"Even pensioners who will qualify for repayments for just a few years could find themselves over the modest means-testing threshold and find their pensions now being cut," Mr Penrose said.
"This would be particularly so in the case of any pensioner who had even a modest 'nest-egg' in the bank."
Mr Penrose said attempts by the Government to reduce future pension entitlement would be "quite rightly seen as vindictive act of revenge against vulnerable, elderly people".
He said he had raised the matter with the Minister for Social and Family Affairs, Mr Brennan, who is to consider the issue. "However, I am alarmed to read that his Department still has not ruled out the pensions being cut."
Senior members of the Cabinet headed by the Taoiseach are to examine the cost of repayments to patients who were illegally charged for care in residential institutions.
A sub-committee consisting of Mr Ahern; the Tánaiste, Ms Harney; and the Minister for Finance, Mr Cowen, advised by the Attorney General Rory Brady, has been set up to consider the terms of the repayments.
The estimated cost is €500 million covering the past six years. It is believed the statute of limitations may apply previous to 1999, and it is understood the sub-committee will examine whether it can be applied.