Michael Finucane
Question:62 Mr. Finucane asked the Minister for Finance the plans, if any, he has to establish a social insurance fund to fund pensions; and if he will make a statement on the matter. [13824/99]
Written Answers. - Pension Provisions.
The interdepartmental working group on the pre-funding of social welfare pensions costs established in the wake of the pensions board report Securing Retirement Income and chaired by my Department has made significant progress to date. I anticipate that the group will complete its work in the course of this year. The deliberations of the group will assist in determining how the future funding of social welfare pensions develops.
Emmet Stagg
Question:63 Mr. Stagg asked the Minister for Finance if he will make a statement in relation to the work being carried out by the two committees chaired by his Department set up following the report of the National Pensions Policy Initiative in 1998. [13846/99]
The first committee chaired by my Department and including representatives of the Departments of Social, Community and Family Affairs, and Enterprise, Trade and Employment and of the pensions board, is considering the recommendations on the pre-funding of the cost of social welfare pensions contained in the report Securing Retirement Income published last year. The committee has met on several occasions and work is continuing with a view to finalising deliberations later this year.
The second committee chaired by my Department is an inter-departmental working group which was established to examine the tax implications arising from the National Pensions Policy Initiative. The issues being examined include the simplification of the tax regime for pensions, specifically in relation to facilitating pension portability and the tax treatment of personal retirement savings accounts.
In regard to PRSAs, a working group, chaired by the Department of Social, Community and Family Affairs, is currently examining the detailed arrangements, including legislation, of a PRSA framework which will facilitate their introduction. This group is currently liaising with the finance working group regarding the tax provisions for PRSAs.
Pending completion of the relevant work of the subcommittees, I am not in a position to make definitive comments on the various issues involved.