Dáil Éireann debate -
Tuesday, 3 Mar 1992

Vol. 416 No. 6

Written Answers. - Public Service Pension Costs.

Michael Lowry

Question:

62 Mr. Lowry asked the Minister for Finance if he has carried out any estimate of the likely cost of public service pensions 20 years from now in light of the substantial recent increase in the proportion of the workforce who are now approaching middle age; and if adequate provisions are now being made to meet prospective pension entitlements.

Ivan Yates

Question:

92 Mr. Yates asked the Minister for Finance if he has carried out any estimate of the likely cost of public service pensions 20 years from now in light of the substantial recent increase in the proportion of the workforce who are now approaching middle age; and if adequate provisions are now being made to meet prospective pension entitlements.

Theresa Ahearn

Question:

104 Mrs. T. Ahearn asked the Minister for Finance if he has carried out any estimate of the likely cost of public service pensions 20 years from now in light of the substantial recent increase in the proportion of the workforce who are now approaching middle age; and if adequate provisions are now being made to meet prospective pension entitlements.

Brendan McGahon

Question:

116 Mr. McGahon asked the Minister for Finance if he has carried out any estimate of the likely cost of public service pensions 20 years from now in light of the substantial recent increase in the proportion of the workforce who are now approaching middle age; and if adequate provisions are now being made to meet prospective pension entitlements.

Paul McGrath

Question:

125 Mr. McGrath asked the Minister for Finance if he has carried out any estimate of the likely cost of public service pensions 20 years from now in light of the substantial recent increase in the proportion of the workforce who are now approaching middle age; and if adequate provisions are now being made to meet prospective pension entitlements.

Frank Crowley

Question:

128 Mr. Crowley asked the Minister for Finance if he has carried out any estimate of the likely cost of public service pensions 20 years from now in light of the substantial recent increase in the proportion of the workforce who are now approaching middle age; and if adequate provisions are now being made to meet prospective pension entitlements.

John Bruton

Question:

180 Mr. J. Bruton asked the Minister for Finance if he has done any estimate of the likely cost of public service pensions 20 years from now in light of the recent substantial increase in the proportion of the workforce who are now approaching middle age; and whether adequate provisions are now being made to meet prospective pension entitlements.

Minister for Finance (Mr. B. Ahern)

I propose to take Questions Nos. 62, 92, 104, 116, 125, 128 and 180 together.

In 1986 the operations research section of my Department carried out with actuarial advice, an examination of the emerging cost of public service pensions. The examination showed that costs would not rise significantly during the following 25 years and that, while costs would rise significantly in the following 15 years, they would remain a relatively small proportion of total public expenditure.

As regards the question of making "adequate provisions", it is not clear what is in mind. If it is being suggested that formal pension funds be created, my position would be that such funds would not be appropriate in the public service. A principal objective of funding is to provide a secure basis for the pensions of employees and they are therefore an appropriate mechanism in the private sector. In the public service the necessary security is adequately met by the State's permanent and continuing commitment to discharge its obligations as they arise. In this connection, I would also point out that the general rule in other countries is that pay as you go is the financing system.