Written Answers. - Pension Board Report.
Dick Spring
Question:
58
Mr. Spring
asked the
Minister for Social, Community and Family Affairs
the status of work being undertaken in his Department with regard to the pensions report, Securing Retirement Income; the interim reports, if any, from the three pensions working groups within his Department due to be published; and if he will make a statement on the matter.
[10335/99]
The Pensions Board report, Securing Retirement Income, on the national pensions policy initiative, NPPI, is a comprehensive document and the culmination of a lengthy consultative process.
The thrust of the proposals in this report was broadly welcomed by this Government, in particular the board's target of increasing secondary pensions coverage to 70 per cent of those at work from under 50 per cent at present.
The three working groups referred to by the Deputy continue their work apace. Two of the groups are chaired by the Department of Finance and are therefore the responsibility of my colleague the Minister for Finance. One group is examining the issue of part pre-funding of the future cost of social welfare pensions, while the other is examining issues relating to the simplification of the pensions taxation regime.
The third working group, chaired by my Department, is exploring how best to progress the recommendation to increase occupational pensions coverage and the mechanism suggested for achieving this – namely, the personal retirement savings accounts, PRSAs. The Government has accepted this recommendation, in principle, and the working group is making good progress in its examination of the various issues. For example, the group will shortly have discussions with potential providers of PRSAs. I expect a report from this working group in the second half of the year in the context of a comprehensive Pensions Bill, which I hope to introduce later this year or early in 2000.
This Bill will also make provision for a number of other NPPI related matters, namely the Pensions Board proposals relating to access, vesting, preservation and revaluation of occupational pensions. In the context of the preparations for this Bill, I will also be considering reports from the board in relation to the treatment of pension scheme surpluses, equal treatment, the establishment of a pensions ombudsman and the introduction of a compensation fund.
I would like to take this opportunity to place on the record of the House a re-affirmation of this Government's firm commitment to the consideration and, as appropriate, implementation of the NPPI proposals in relation to occupational pensions. The introduction of the pensions Bill, on foot of these, is a key Government priority. I have already stated that the NPPI report itself was the result of a wide ranging consultative process between Government, the social partners, pensioners, groups representing the interest of older people and the pensions industry. I believe that this partnership approach, which has developed over the years, should continue to be the cornerstone of pensions analysis and development as it is an extremely useful and efficient approach to enabling Government to develop policies in this area.
