Dáil Éireann debate -
Wednesday, 17 Nov 1999

Vol. 511 No. 1

Written Answers. - Pension Provisions.

Ruairí Quinn

Question:

69 Mr. Quinn asked the Minister for Social, Community and Family Affairs the progress, if any, on his proposals for the development and regulation of occupational pensions; and the inputs, if any, he has had into the plans for long-term pension provision currently being drawn up by the Department of Finance. [23602/99]

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

A blueprint for the development of occupational pensions was set out by the Pensions Board in its report, Securing Retirement Income, on the national pensions policy initiative. At the time of the publication of the report in May 1998, I set out the Government's response in Action on Pensions, a copy of which was furnished to each Deputy. This response welcomed the broad thrust of the proposals in the occupational area and established working groups to examine these further with a view to implementation.

Interdepartmental working groups are currently examining: the introduction of a personal retirement account – this group is chaired by my Department and I expect to receive a report before the end of the year; tax issues in relation to occupational pensions generally – the group is chaired by the Department of Finance and includes representatives of my Department, issues in relation to this group are, therefore, a matter for my colleague, the Minister for Finance; and the partial pre-funding of social welfare and public service pensions on foot of the Government's decision in July to adopt this approach. As this group is chaired by the Department of Finance, it is a matter for the Minister for Finance.

I assure the Deputy that my Department is actively involved in all these working groups.

On further enhancement of the national pensions environment and in line with the national pensions policy initiative recommendations, in the 1999 Social Welfare Act, I provided for the board's recommendation to prohibit reductions in occupational pensions already in payment, arising from increases in social welfare pensions.

Other recommendations relating to access, vesting, preservation and revaluation of occupational pensions are also being examined and developed by the Department, in consultation with the Pensions Board.

I will also be considering reports from the board in relation to the treatment of pension scheme surpluses, equal treatment and the compensation fund. Legislative effect will be given to these and other recommendations contained in the national pensions policy initiative report in a comprehensive occupational pensions Bill which I propose to introduce as soon as possible next year.