Dáil Éireann debate -
Wednesday, 26 Nov 1997

Vol. 483 No. 4

Written Answers. - Pension Provisions.

Bernard J. Durkan

Question:

52 Mr. Durkan asked the Minister for Social, Community and Family Affairs the proposals and intentions, if any, he has to protect the social welfare fund in order to provide for the future requirements of an ageing population; and if he will make a statement on the matter. [20457/97]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

As the Deputy will be aware, my Department in conjunction with the Pensions Board is currently sponsoring a national pensions policy initiative.

The purpose of the initiative is to facilitate a national debate on how to work towards a national pension system consistent with the aim of providing pension benefits which maintain a reasonable relationship with previous income levels so that established standards of living can be maintained.

This initiative is now at an advanced stage and I expect a report, including recommendations, from the Pensions Board in the New Year. The position of pensions, both Social Welfare and Occupational, and pensioners generally and the role of the social insurance fund will arise for consideration in this context.

The final report of the National Pensions Board, published in 1993, recommended that an actuarial review of the cost of Social Welfare pensions should be carried out at least every five years. The first such review was published in September and I intend providing a legislative basis for such a review to be undertaken every five years. The results of this review have fed into the initiative.

The social insurance fund plays a key role in the provision of social protection in Irish society. People, when they are economically active, make contributions to the fund according to their ability to pay and depending on the range of benefits and pensions for which they are covered. These payments fund the pensions of an earlier generation of contributors and also pay benefits to persons who are not working due to unemployment or illness. Contributors, accordingly, build up entitlements to various pensions and benefits which are paid to them as of right, without having to undergo a means test.

I am fully committed to enhancing the long-term security of the fund. In this regard, one of the issues which I am examining for the future is the establishment of a Social Insurance Board. The possible role and composition of such a board is under consideration.

Overall, this is a very important time for pensions policy. We need to look comprehensively and very carefully, over a relatively short time frame, at the present position. We then need to make decisions and, most importantly, to carry those decisions through so that we face up to, and deal with the medium and long-term issues so as to ensure that the living standards of future generations of pensioners are safeguarded.

This national pensions policy initiative, the actuarial review and the setting up of the social insurance board are important steps towards achieving this.