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Dáil Éireann debate -
Thursday, 24 May 2001

Vol. 537 No. 1

Written Answers. - Pension Provisions.

Question:

49 Mr. Coveney asked the Minister for Social, Community and Family Affairs when the Pensions Bill will be published. [15163/01]

Ivor Callely

Question:

164 Mr. Callely asked the Minister for Social, Community and Family Affairs the progress made with the recommendations of the national pensions policy initiative; and if he will make a statement on the matter. [14592/01]

I propose to take Questions Nos. 49 and 164 together.

The Pensions Board's report, Securing Retirement Income, – on the national pensions policy initiative – NPPI – laid down a blueprint for the development of supplementary pensions provision in Ireland. It is a particularly complex and detailed report and the culmination of a lengthy consultation process with all the representatives of the Irish pensions area.

The Government broadly welcomed the thrust of the proposals and I take this opportunity to reaffirm the Government's firm commitment to the implementation of the proposals contained in the board's report.

The Government has already taken action on a number of the main NPPI proposals. The Government has set up a pensions reserve fund to partly offset the future cost of pensions, as recommended by the board. The significant increases in the rate of pensions means that we are making good progress towards the NPPI recommendation that the weekly rate should represent 34% of average industrial earnings. In addition, acting on one of the recommendations in the report, I introduced provisions in the 1999 and 2000 Social Welfare Acts which prohibited reductions in occupational pensions already in payment to pensioners, arising from increases in social welfare pensions. This ensured the full value of the budget increase in the social welfare pension was passed on to pensioners.

In relation to outstanding NPPI recommendations, it is proposed that the forthcoming pensions Bill will give legislative effect to these proposals. One of the key features of the Bill will be the provision of a legislative framework for the introduction and regulation of personal retirement savings accounts, PRSAs. As the Deputy will be aware, on 12 April I announced details of the draft legislative framework for PRSAs. PRSAs were recommended by the board as the vehicle to facilitate increased savings for pensions and extend supplementary pensions coverage overall, especially to people who have no such cover at present.

The 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. In the context of preparations for the Bill, I am also considering reports from the board in relation to the treatment of scheme surpluses, equal treatment, a pensions ombudsman and a compensation fund.

I intend to publish the pensions Bill by the end of June this year.

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