Dáil Éireann Debate, Thursday - 25 November 2010
166 Deputy Michael Ring asked the Minister for Social Protection the amounts of money paid into social insurance fund for each of the past ten years to date in 2010 in tabular form; and if he will make a statement on the matter. [44559/10]
View answer167 Deputy Michael Ring asked the Minister for Social Protection the surplus in the social insurance fund each year for each of the past ten years to date in 2010 and the ongoing cumulative total in this fund in tabular form; and if he will make a statement on the matter. [44560/10]
View answer168 Deputy Michael Ring asked the Minister for Social Protection the amount of payments out of the social insurance fund in each of the past four years to date in 2010; the purpose of same; and if he will make a statement on the matter. [44561/10]
View answerI propose to take Questions Nos. 166 to 168, inclusive, together.
The Social Insurance Fund finances expenditure on insurance based welfare benefits. It held cash equivalent reserves of €890 million at the beginning of 2010. The amount by which income exceeded expenditure has fallen since 2006 and the Fund has run an annual deficit since 2008, using accumulated reserves to supplement the funding required for benefit payments. These cash reserves were exhausted earlier this year. The shortfall between Fund income and expenditure is being met by way of subvention from the Department's Vote 38.
It is important to note that traditionally, social insurance spending has been funded on a tripartite basis — with contributions coming from the exchequer, employers and employees. The exchequer is the residual financier of the Fund and exchequer contributions were the norm for over forty years — for example, in 1967, the state contribution was 38% of Fund expenditure and almost 29% in 1985. However, no exchequer contribution was required between 1996 and 2009 as the Fund was in surplus on foot of contributions from employers and workers.
An actuarial review of the Social Insurance Fund, undertaken in 2005, which covered the period from 2006 to 2061, highlighted that progressive action is required if future costs, including pensions, are to be met. This will involve finding an appropriate balance between the three strands of the tripartite funding system.
The following table sets out the annual information required by the Deputy.
|
Year |
Receipts |
Payments |
Operating Surplus/Deficit |
Accumulated Surplus/Deficit |
|
€ m |
€ m |
€ m |
€ m |
|
|
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 |
|
2008 |
8,144 |
8,399 |
(255) |
3,377 |
|
2009** |
7,298 |
9,783 |
(2,485) |
892 |
|
2010*** |
4,957 |
6,993 |
(2,036) |
(1,144) |
*Payments from the Fund are exclusive of a once off transfer of €635million to the Exchequer.
**2009 accounts are subject to audit by the Comptroller & Auditor General.
***These are the provisional monthly figures up to the end of September. The accumulated deficit of €1,144 million has been funded by way of subvention from the Department's Vote 38.
