Dáil Éireann debate -
Wednesday, 13 Nov 2002

Vol. 557 No. 2

Written Answers. - Pension Provisions.

Dinny McGinley

Question:

276 Mr. McGinley asked the Minister for Social and Family Affairs the number of people eligible for deferred pensions with frozen benefits; and if the Government, which compelled people to join these schemes, is responsible for the paltry benefits resulting from these schemes. [21710/02]

Minister for Social and Family Affairs (Mary Coughlan)

While it is Government policy to encourage as many people as possible to acquire supplementary pension coverage, participation in an occupational pension arrangement is voluntary and is a private matter between the employer and the employee. Some employers do require employees as part of their employment contract to join a company pension scheme.

The Pensions (Amendment) Act, 2002, made significant improvements in the area of preservation of pension entitlement. These include, in respect of people who leave employment after 1 June 2002, vesting of pension benefit after two years, previously five; preserved benefit in respect of pre-1991 service and revaluation of that benefit. These improvements will be of considerable benefit to people qualifying for deferred pensions in the future.

In their recent pension module of the QNHS, the Central Statistics Office estimate that 3.1% of all persons in employment aged 20 to 69 have an entitlement to a deferred pension. It is considered that this may underestimate the position.