Jim O'Keeffe
Question:59 Mr. J. O'Keeffe asked the Minister for Social Welfare the manner in which the social insurance fund is managed; the contributions estimated for 1993; and whether the maximum benefits accrues to the State from the cash flow.
Written Answers. - Social Insurance Fund.
The Social Insurance Fund was established under the Social Welfare Act, 1952. The legislation provided for an investment account, to be managed and controlled by the Minister for Finance and a current account, which is managed and controlled by my Department. The annual accounts of the Social Insurance Fund are certified by the Comptroller and Auditor General.
Following a Government decision, the investments of the Social Insurance Fund were realised in 1992 and the income generated was transferred to the current account of the fund.
The Social Insurance Fund is not entirely self-financing and the Exchequer each year makes up the shortfall between receipts and expenditure. The Exchequer contribution is drawn down throughout the year, as required. The income of the fund is comprised overwhelmingly of pay-related social insurance contributions which are estimated to yield £1,567 million in 1993. The Exchequer contribution is estimated at £197 million. Receipts from other courses are estimated to amount to less than £1 million this year.
The PRSI contributions are collected by the Revenue Commissioners through the taxation system. There is a constant flow of funds from the Revenue Commissioners to my Department. Funds are distributed as required to various outlets — An Post, banks, and Social Welfare Local Offices — for the payment of pensions and benefits.
Income and expenditure are monitored on a daily basis by my Department. I am satisfied that the arrangements in place ensure that the maximum advantage accrues to the State from the management of the funds.