Question:
22 Dr. Upton asked the Minister for Finance the progress, if any, made in setting up the funds which are intended to make part provision for future pension liabilities; and if he will make a statement on the matter. [9334/00]
Written Answers. - Pension Provisions.
Draft legislation providing for the establishment, financing and management of a national pensions fund is being prepared by my Department. It is envisaged that the fund will help finance the Exchequer cost of the broad range of social welfare and public service pensions over the long-term. While there are a number of important policy issues to be considered in preparing the draft legislation, I hope to be in a position to bring pro posals to the Government shortly and to introduce a Bill in the House before the summer recess.
The House will be aware that a sum of approximately £3 billion was paid into a temporary holding fund following the passing of interim legislation last December. This was the Exchequer allocation for pension funding in 1999 with £2.4 billion obtained from the Telecom Éireann flotation and nearly £600 million representing the 1% of GNP contribution for 1999. A provision in this year's Finance Act will enable a further sum of up to £1.85 billion to be paid into the temporary fund in the current year, of which nearly £1.2 billion is from the Telecom sale and about £650 million is an estimate of the 1% of GNP contribution for the year 2000. Moneys in the temporary fund are being managed by the National Treasury Management Agency in short-term deposits and financial instruments. These monies will be transferred to the national pensions fund once this is established under legislation.