Dáil Éireann Debate, Tuesday - 14 November 2006
143 Mr. Sargent asked the Minister for Social and Family Affairs his views on the European Commission’s proposed directive to protect the occupational pension rights of EU workers who change jobs or move between member states. [37669/06]
View answerOn 20 October 2005, the European Commission adopted a proposal for a Directive on improving the portability of supplementary pension rights. The purpose of the Directive is to facilitate free movement of workers within and between EU member states by removing perceived obstacles to mobility within and between member states which may be caused by present supplementary pension scheme provisions.
The perceived obstacles to mobility relate to the conditions of acquisition of occupational pension rights, the preservation of dormant pension rights, the transferability of acquired occupational pension rights and the provision of information to employees on their pension rights.
In the main, the proposals in the Directive do not create major difficulties for Ireland, as they are already a requirement under the Pensions Act 1990. The Pensions Act provides for transferability of pension rights, the preservation of rights for those who leave a pension scheme and the revaluation of accrued pension rights. These conditions apply whether the person is moving within the State or to another EU member state.
In addition, regulations made under the Pensions Act provide a framework for the disclosure of certain information to members of pension schemes.
At EU level, discussions at the Social Questions Group have been ongoing since November 2005. My Department has primary responsibility for negotiating and transposing the requirements of the Directive. Most member states have raised issues with the Directive and these have been discussed in great detail in the group. Progress to date has been slow, reflecting the very different supplementary pension systems in operation in many member states.
In a number of member states, these systems are presently in transition or new legislation on supplementary pensions schemes is being considered. Indeed some delegations have indicated that, in their member states, no supplementary pension systems exist.
The latest meeting of the Social Questions Group was held yesterday under the Finnish Presidency and discussions will continue next year under the German Presidency.
144 Aengus Ó Snodaigh asked the Minister for Social and Family Affairs his views on whether, in the event of the Government increasing the non-contributory pension to €200 in 2007, that this amount is no longer sufficient to ensure that pensioners have sufficient income to live on and participate equally in society. [37655/06]
View answerSince taking office this Government has made the needs of older people a priority with the inclusion of several commitments in the Programme for Government aimed specifically at the group. One of these is a commitment to increase the state pension rate to €200 per week by 2007. In Budget 2006 non-contributory pensioners received an increase of €16 per week (9.6%) bringing the maximum pension to €182.00 per week. Overall, the non-contributory pension has increased by almost 35% since 2002, or in real terms, an increase of about 21%. Pension increases have been well ahead of inflation thus ensuring that not only is the real value of pensions maintained but that they are significantly improved in real terms. I am confident that this trend will be maintained in the coming Budget.
However, increases in pension rates have not been the only way by which I have ensured that pensioners' incomes have increased. Other measures of benefit to older people include an increase in the fuel allowance of €5 per week, bringing the allowance to €14 per week, and an increase in the over 80 allowance of €3.60 per week, bringing it to €10 per week.
In the last two Budgets, I announced a wide range of important measures for non-contributory pensioners. In Budget 2005 the capital allowance increased from €12,697 to €20,000 and in 2006 the basic means disregard increased significantly from €7.60 to €20 per week. Consequent on the increase in the means disregard, a single person with no other means can have up to €36,000 in capital and still qualify for a pension at the maximum rate. These figures are doubled in the case of a pensioner couple. The increase in the means disregard led to some 34,000 non-contributory pensioners having their payments increased by up to €12.50 per week in addition to the budget increases.
As part of the pension reforms, I also announced a specific additional disregard of €100 per week where the non-contributory pensioner is in employment. This new disregard, relating to earnings from employment, is intended as an incentive to facilitate non-contributory pensioners who wish to continue working, or to re-enter the workforce. The effect of this is that the first €100 of weekly earnings from employment is disregarded from the means test and a similar disregard applies to the pensioner's spouse or partner. The disregard will also apply to people under age 66 who are in receipt of a widow/er's non-contributory pension, deserted wife's allowance and prisoner's wife's allowance.
The household benefits package, which comprises telephone allowance, electricity/natural gas allowance and free TV licence is available to people living in the State aged 66 to 69 years subject to certain conditions, and to over 70s.
The electricity/natural gas allowance is of immense benefit to older people who in general have greater heating requirements.
The additional supports, combined with the unprecedented increases in pension rates demonstrate that the needs of older people continue to be a priority for this Government. I will continue to look for opportunities to ensure that we can continue to make progress on improving the level of supports we provide for our older people.
