Dáil Éireann Debate, Tuesday - 30 September 2008
466 Deputy Michael Ring asked the Minister for Social and Family Affairs the amount in the social insurance fund in each of the past ten years; the funding that has been taken out of the fund; the purpose for which it was taken out; and if she will make a statement on the matter. [32430/08]
View answerThe Social Insurance Fund derives its income mainly from pay-related social insurance contributions from employers, employees and self employed workers. It provides insured contributors with both long-term pension benefits and short-term benefits such as unemployment and disability payments. The fund comprises a current account which is managed and controlled by the Minister for Social and Family Affairs and an investment account which is managed and controlled by the Minister for Finance through the National Treasury Management Agency (NTMA). Funds which are surplus to day to day requirements are held in the investment account and receive a return on their investment. The following table outlines the Social Insurance Fund receipts, payments, annual surplus and accumulative surplus for each year since 1997. The figures for 2007 are provisional.
|
Year |
Receipts |
Payments |
Annual Surplus |
Accumulated Surplus |
|
€m |
€m |
€m |
€m |
|
|
1997 |
2,469 |
2,461 |
8 |
10 |
|
1998 |
2,717 |
2,648 |
69 |
79 |
|
1999 |
3,159 |
2,818 |
341 |
420 |
|
2000 |
3,726 |
3,291 |
435 |
855 |
|
2001 |
4,307 |
3,676 |
631 |
1,486 |
|
2002 |
4,798 |
4,376 |
422 |
1,273 |
|
2003 |
5,089 |
4,833 |
256 |
1,529 |
|
2004 |
5,650 |
5,273 |
377 |
1,906 |
|
2005 |
6,159 |
5,665 |
494 |
2,400 |
|
2006 |
6,975 |
6,326 |
649 |
3,049 |
|
2007 |
7,834 |
7,251 |
583 |
3,632 |
The fund was established in 1953. From 1953 to 1996 there was a shortfall between the amount of income received into the fund and expenditure from it. This was made up by way of an Exchequer subvention in each year, as provided for under the Social Welfare Acts. From 1997 the fund has generated an annual surplus with an accumulated surplus being invested by the NTMA.
There were no draws on the fund in the period 1997 to 2007 for the purposes of meeting its liabilities. In 2002 a contribution of €635 million was made from the fund to the Exchequer. The contribution was made in view of the strong financial position of the fund and in recognition of the exchequer contributions to the fund over the earlier years.
