Vol. 556 No. 2
28 Mr. Quinn asked the Minister for Social and Family Affairs if her attention has been drawn to the fact that more than half of Irish workers have no pensions, according to the Pensions Board; if she has satisfied herself that pension coverage has kept pace with the increase in the workforce over recent years; the steps her Department is taking to increase the number of Irish workers with pensions; and if she will make a statement on the matter. [19516/02]
Recent data from the Quarterly National Household Survey published by the CSO show that almost 51% of persons at work aged 20 to 69 have supplementary occupational or personal pensions cover. While there are no comparable data, indications are that this coverage rate is broadly in line with the last available information from 1995. A fall in occupational coverage of employees is balanced by rising personal pensions cover of self-employed people.
The Pensions Board report on the national pensions policy initiative estimated that 70% of workers over 30 years of age require supplementary pension cover if they are to maintain their pre-retirement standard of living.
The Government aims to increase private pensions coverage in line with this target and, in this regard, the introduction of personal retirement savings accounts, PRSAs, provided for in the Pensions (Amendment) Act, 2002, will be a key instrument of this strategy. Participation in a PRSA arrangement will not be compulsory but employers will be required to facilitate their employees in this if they do not already offer a pensions scheme.
It is expected that the new products will be available to the public early in 2003. An information-awareness campaign to alert the public to the need to provide themselves with additional pension cover is also planned for next year. There is a statutory requirement to review the effectiveness of the overall strategy in increasing private pensions coverage within three years.
Question No. 29 answered with Question No. 22.
