Vol. 505 No. 7
32 Proinsias De Rossa asked the Minister for Social, Community and Family Affairs the progress made to date in implementing the report on the national pensions policy initiative; and if he will make a statement on the matter. [14584/99]
The Pensions Board report, Securing Retirement Income, on the national pensions policy initiative published in May 1998 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 which were set up to examine the recommendations in the report 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 or PRSAs. The Government has accepted this recommendation, in principle, and the working group is making good progress in its examination of the very complex issues involved. The group is currently preparing a consultation document on the technical and operational issues arising in relation to the development of the framework for PRSAs which will issue as soon as possible to a wide range of potential PRSA providers.
I expect a report from this working group later this year in the context of a comprehensive pensions Bill, which I hope to introduce early next year.
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.
