Terence Flanagan
Question:94. Deputy Terence Flanagan asked the Minister for Social Protection the full impact on the State of the Waterford Crystal court case; and if she will make a statement on the matter. [26516/14]
View answerDepartmental Legal Cases
Questions (94)
Written answers
As the Deputy is aware the matters relating to the Waterford Crystal Pension schemes are the subject of a hearing by the High Court.
The case is scheduled for hearing by the High Court in the Autumn. The Deputy will therefore appreciate that it would not be appropriate for me to comment on matters relating to this case at this time.
Pensions Reform
Questions (95)
Terence Flanagan
Question:95. Deputy Terence Flanagan asked the Minister for Social Protection the work her Department is doing on pensions as our population starts to age; and if she will make a statement on the matter. [26517/14]
View answerWritten answers
Reforms have been introduced in recent years to ensure the sustainability of pensions into the future. These decisions were taken in the context of changing demographics and the fact that people are living longer and healthier lives. For example, there are currently 5.3 people of working age for every pensioner and this ratio is expected to decrease to approximately 2.1 to 1 by 2060. The over 65 year old population is also projected to increase from 11% of the total population in 2010 to 15% in 2020 and to 24% in 2060.
There are approximately 17,000 additional pensioners coming into receipt of State pension each year. In the absence of reform, it is estimated that State expenditure on pensions (including public sector occupational pensions) would increase from approximately 7.5% of GDP in 2010 to 11.7 % in 2060. In 2013, the overall Departmental expenditure figure was €20.2 billion and expenditure on pensions accounted for 32% of this.
Whilst the increase in life expectancy is a very welcome development, this also has obvious and significant implications for the future costs of State pension provision. The fundamental principle involved here is that longevity in the workforce needs to be supported if people are to achieve the income they expect or would like to have in retirement.
A number of policy reports on pensions have been completed including a Green Paper on Pensions (2007) and a National Pensions Framework in 2010. I commissioned the OECD Review of the Irish Pensions System which was completed in 2013.
Arising from the changing demographics described, these policy reports and the need to provide for sustainable pensions and longer working lives, a range of reforms have been introduced recently to the pension system as follows -
In January 2014, State pension age was standardised at age 66 with the cessation of State pension transition. The State pension age will increase to 67 years in 2021 and to 68 years in 2028.
With effect from April 2012, and as provided for in legislation in 1997, the number of paid contributions required to qualify for a State pension increased from 260 paid contributions to 520 paid contributions.
As provided for in Budget 2012, from September 2012, new rate bands for State pension were introduced. These additional payment rate bands more accurately reflect the social insurance history of a person and ensure that those who contribute more during a working life benefit more in retirement than those with lesser contributions.
As announced in Budget 2012, the period for which a claim for State pension can be backdated is six months. This change came into effect in April 2012.
From December 2013, the number of paid contributions required for Widow’s/Widower’s/ Surviving Civil Partner’s pension increased from 156 contributions to 260 contributions.
It is also planned to introduce a “total contributions approach” to determine eligibility for a State pension. The level of pension paid will be directly proportionate to the number of social insurance contributions made by a person over his or her working life. The proposed date for the introduction of a move to a total contributions approach is 2020, but this may be subject to change.
It is Government policy through the provision of generous tax reliefs to support private supplementary pension saving to allow individuals cater for an adequate income in retirement. The Deputy will be aware the Government has previously highlighted its concern at the currently low supplementary pension coverage rate of approximately 50% of workers. This is why 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 Pensions System provides an international perspective on Ireland’s retirement-income provision. Whilst endorsing pension policy reforms undertaken to date, the report also makes a number of recommendations for future reform. The OECD’s key recommendation is to improve the adequacy and sustainability of pensions by increasing coverage in the funded part of the pensions system through a universal mandatory or quasi-mandatory employment based pension system.
The OECD has indicated in its report that its first preference is a mandatory scheme, with its second preference being automatic enrolment, whereby people would be automatically enrolled but could opt out. I have previously stated that a soft-mandatory approach such as that envisaged by an auto-enrolment scheme, using scale to achieve greater cost efficiencies for the member, has been proven a successful and proactive way in which we can increase supplementary pension coverage. However, it is recognised that introduction of any such initiative would be best supported by a more favourable economic environment than is currently the case. The recommendations contained within the OECD report are currently being considered.
Rent Supplement Scheme Payments
Questions (96)
Bernard Durkan
Question:96. Deputy Bernard J. Durkan asked the Minister for Social Protection the maximum rent support available in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [26544/14]
View answerWritten answers
The maximum rent limit for an eligible family unit as outlined in the specified area is €850.00 per month.
Child Benefit Applications
Questions (97)
Bernard Durkan
Question:97. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent, if any, to which arrears in respect of child benefit are due in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [26547/14]
View answerWritten answers
Child benefit is paid up to and including the month of a child’s 16th birthday and continues to the month of the 18th birthday provided the child is in full-time education. In order for payment to continue after the age of 16, it is necessary for the school to certify that the child is in full-time education and will be until the age of 18.
In the case of the person concerned, a completed application form was received and child benefit was awarded to January 2014, the month of the child’s 18th birthday. Child benefit is not paid after the month of the 18th birthday, even if the child remains in full-time education.
Rent Supplement Scheme Payments
Questions (98)
Bernard Durkan
Question:98. Deputy Bernard J. Durkan asked the Minister for Social Protection if an increase in rent allowance will be considered in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [26551/14]
View answerWritten answers
The rent supplement claim for the client concerned was reassessed on 10 June following a rent reduction. All arrears owed will issue to the client by cheque.
Disability Allowance Appeals
Questions (99)
Bernard Durkan
Question:99. Deputy Bernard J. Durkan asked the Minister for Social Protection if she will accept this request for appeal against the decision to refuse disability allowance in the case of a person (details supplied) in County Kildare in view of the availability of conclusive medical evidence to the effect that they will not be in a position to take up employment in the foreseeable future; and if she will make a statement on the matter. [26558/14]
View answerWritten answers
The Social Welfare Appeals Office has advised me that an appeal by the person concerned has not been received by that office. A form has been forwarded to the person concerned requesting him to state the grounds for his appeal of the Department’s decision. On receipt of his reply the appeal will be opened and processed in the normal manner.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
Pension Provisions
Questions (100)
Heather Humphreys
Question:100. Deputy Heather Humphreys asked the Minister for Social Protection her plans to provide a pension for long serving community employment members in a supervisory position who are due to retire shortly; and if she will make a statement on the matter. [26559/14]
View answerWritten answers
The Labour Court recommended in July 2008 (LCR19293) that an agreed pension scheme should be introduced for Community Employment (CE) scheme supervisors and assistant supervisors and that such a scheme should be adequately funded by FÁS, the agency responsible for CE at that time. Notwithstanding the position of this Department (which now has responsibility for CE) in rejecting that liability for these costs be met from public funds, this matter has been the subject of discussions with the Department of Public Expenditure and Reform and the unions representing CE supervisors.
Given the level of funding that would be required from this Department, the implementation of the claim is not considered sustainable in light of the current and on-going fiscal environment and the requirement to contain and reduce public expenditure. The costs of the introduction of any scheme are likely to be of the order of €3m per annum, with retrospective costs of the order of at least €30m.
It should also be noted that this Department is not the employer of CE supervisors and such employees are not public servants. The responsibilities of the sponsoring organisations and the individuals concerned must also be recognised when considering pension provision arrangements.
Departmental Staff Remuneration
Questions (101)
Seán Fleming
Question:101. Deputy Sean Fleming asked the Minister for Social Protection the cumulative total of unapproved salary top-ups currently being paid to staff under the remit of her Department; and if she will make a statement on the matter. [27088/14]
View answerWritten answers
All staff serving in my Department and the Agencies that operate under its aegis, namely the Pensions Authority, the Citizens Information Board and the Office of the Pensions Ombudsman, are paid in accordance with pay scales approved by the Department of Public Expenditure and Reform. There are no top up payments made to any of these staff.