Dáil Éireann Debate, Thursday - 12 June 2014
114. Deputy Terence Flanagan asked the Minister for Social Protection her views on collective pensions as outlined in the Queen's recent speech; her plans to introduce same here; and if she will make a statement on the matter. [25068/14]
View answerAs matters stand collective defined contribution pension schemes are not a feature of the Irish pensions landscape though there is a range of defined benefit, defined contribution and hybrid scheme structures which would share characteristics with such a model.
The Deputy will be aware that the Programme for Government includes a commitment to reforming Ireland’s pension system to progressively achieve universal coverage, with particular focus on lower-paid workers.
The OECD Review of the Irish Pension System, published last year, also provides an international perspective on Ireland’s retirement-income provision. This comprehensive report encompasses the totality of the pension system in Ireland covering the State pension, private, occupational and public sector pensions. The issues of sustainability; adequacy; modernity; and equity were central to this review.
Whilst endorsing pension policy reforms undertaken to date, the report makes a number of recommendations for future reform. The OECD’s key recommendation is to improve the adequacy of pensions by increasing coverage in the funded part of the pensions system through a universal mandatory or quasi-mandatory employment based pension system.
I have previously highlighted that a soft-mandatory approach such as that envisaged by an auto-enrolment scheme, using scale to achieve greater cost efficiencies for the member, is a very proactive way in which we can increase supplementary pension coverage, though it is recognised that introduction of such an initiative would be best supported by a more favourable economic environment than is currently the case.
To ensure the optimum solution for scheme members, the development of any universal pension scheme aimed at increasing pension coverage would involve the close consideration of all potential pension models including collective defined contribution.
