Dáil Éireann debate -
Tuesday, 17 Nov 1998

Vol. 496 No. 6

Written Answers - Pension Provisions.

Derek McDowell

Question:

355 Mr. McDowell asked the Minister for Social, Community and Family Affairs the proposals, if any, he has to implement the Bacon report on pensions published in 1998; and if he will make a statement on the matter. [19497/98]

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

The Pensions Board report "Securing Retirement Income", on the National Pensions Policy Initiative, for which Dr. Bacon provided consultancy, is a comprehensive and detailed document.

On foot of the Government response to the report as set out in "Action on Pensions", published when the report was launched in May, working groups have been set up as follows: (a) to examine fully the recommendation for an explicit fund to minimise the additional, future costs of social welfare pensions; (b) to progress the recommendation to increase second pillar coverage and the mechanism suggested for achieving this — namely, the personal retirement savings account; the Government has accepted this finding, in principle, and the working group is currently examining the issues involved with a view to appropriate legislation being introduced; (c) to further examine and advance the proposals to introduce a simplified and more flexible tax regime for pensions. Again, this was also accepted, in principle, by the Government and the third working group is considering this matter with a view to making the necessary legislative changes. This group is also examining issues relating to annuity purchase and the question of an earnings cap in relation to tax relief on pensions; and (d) to bring forward proposals in relation to an effective awareness-education programme. Again, the Government is deeply supportive of the proposals in this regard. The importance of clear and easily understandable information in the pensions area cannot be underestimated. I expect to receive an initial report on this from the Pensions Board by the end of this year.

As the Deputy will be aware, the Government also accepted the board's proposals for legislative changes in relation to access, vesting, preservation, revaluation and integration.

In am committed to implementing the proposals in the report as quickly as possible. However, I am also of the opinion that this must be done by way of a considered approach and I hope to publish a comprehensive Pensions Bill in the last quarter of 1999, with a view to enactment during 2000.