Dáil Éireann debate -
Thursday, 26 Jun 2003

Vol. 569 No. 5

Written Answers. - Pension Provisions.

Brendan Howlin

Question:

31 Mr. Howlin asked the Minister for Social and Family Affairs if her attention has been drawn to the fact that almost two thirds of all private sector workers do not have a pension; the steps her Department are taking to promote the uptake of pensions; and if she will make a statement on the matter. [17906/03]

Minister for Social and Family Affairs (Mary Coughlan)

Data from the quarterly national household survey published by the CSO last year estimate that almost 51% of persons at work aged 20 to 69 have supplementary occupational or personal pensions cover. However, coverage varies greatly across different sectors. Employees in the public administration sector have the highest coverage at 87.8%, while in the retail trade and hotels and restaurants sectors coverage is low at 25.8% and 12.5% respectively. 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. In this regard, the personal retirement savings account, PRSA, provided for in the Pensions (Amendment) Act 2002 is a key instrument of this strategy which has been available to the public since March of this year.

Participation in a PRSA arrangement is not compulsory but employers will be required to facilitate this for their employees if they do not already offer a pensions scheme. This requirement will take effect from 16 September 2003.

Some €0.5 million has been provided for a pensions awareness campaign. This will have a two-fold aim – first, to make employers aware of their obligations in relation to PRSAs and, second, to encourage the general public to consider contributing to supplementary pension arrangements. The campaign is being run by the Pensions Board and arrangements in this regard are well advanced. The take-up of PRSAs and pensions coverage generally will be monitored and a review of the overall pensions strategy will be undertaken within three years.