Vol. 501 No. 6
213 Mr. McGuinness asked the Minister for Finance if he will make a statement on whether Ireland's pension fund is in deficit in view of the severe problems being experienced in France and Germany in relation to State pensions; if so, the plans, if any, he has to remedy the deficit; and if he will make a statement on the matter. [6978/99]
I assume the Deputy is referring to funding of public service occupational pensions. The majority of such pension schemes are not funded. They are financed on a pay as you go basis. Recent actuarial studies suggest that the cost of public service pensions, expressed in constant price terms, will increase fourfold over the next 30 years.
This issue was referred to in the interim report of the Commission on Public Service Pensions which was published in November 1997. In that report, the commission stated that the evolution of pension costs required careful monitoring. It noted that funding, were it to be introduced on a full or partial basis, would raise significant practical and budgetary issues. It went on to say that it would consider the full range of arguments regarding funding in its final report, taking into account the experience of other countries.
Against this backdrop, I look forward to receiving the recommendations of the commission which is to report shortly
