Written Answers Nos. 496-513
496. Deputy Paul Murphy asked the Minister for Employment Affairs and Social Protection the estimated increase in revenue that would result from an increase in the existing two bands of PRSI by 2%, discounting employer's PRSI paid from the public purse; and if she will make a statement on the matter. [40571/17]
View answer497. Deputy Paul Murphy asked the Minister for Employment Affairs and Social Protection the estimated increase in revenue that would result from an increase in the current 8.5% rate of employer's PRSI to 10.5%, an increase of the 10.75% rate to 12.75% and the introduction of a new band for employers hiring employees on more than €100,000 of 19.75%; the further estimated increase in net revenue from this change, discounting employer's PRSI paid from the public purse; and if she will make a statement on the matter. [40572/17]
View answerI propose to take Questions Nos. 496 and 497 together.
The following table sets out the estimated increase in the PRSI yield to the Social Insurance Fund from the measures detailed by the Deputy:
|
Measure |
Yield |
|
Increase in the existing two bands of Class A employer PRSI by 2% by: - increasing the 8.5% rate of employer's PRSI to 10.5% and - increase the 10.75% employer rate to 12.75% |
€1,438.9m |
|
Increase 8.5% rate of Class A employer's PRSI to 10.5%, 10.75% rate to 12.75% and the introduction of a 19.75% for those earning over €100,000 (payable on the earnings in excess of €100,000 only) |
€1,910.2 |
Without extensive cross referencing to identify individual employed contributors in the civil and public sector, in the time available it is not possible to identify civil and public sector employees earning in excess of €100,000 to facilitate discounting employer's PRSI paid from the public purse.
These estimates are based on PRSI Class A contributors. They use the latest available data and reflect macro-economic indicators for 2018. It should be noted that the estimate does not take into account any possible changes in employer behaviour arising from changing rates of contribution.
498. Deputy Pearse Doherty asked the Minister for Employment Affairs and Social Protection when the actuarial review of the Social Insurance Fund is due to be published; and if she will make a statement on the matter. [40138/17]
View answerThe Social Welfare (Consolidation) Act, 2005, as amended, makes provision for the carrying out of actuarial reviews of the Social Insurance Fund at five yearly intervals. The last actuarial review, as at 31 December 2010, was published in 2012.
The fourth actuarial review, as at 31 December 2015, is currently being undertaken by external consultants. The review will project the income and expenditure of the Fund over a 55 year period, taking into account policy, economic and demographic changes since the previous review was undertaken. In providing an assessment of the financial health of the Fund, the findings of the review will contribute to the development of policy for social insurance benefits generally.
In addition to examining options relating to the State pensions, the review will examine the projected PRSI contribution rates required to provide individual benefits to Class S self-employed contributors on a revenue neutral basis.
The Department is carrying out the review in consultation with a range of other relevant departments and bodies including the Department of Finance, the Department of Public Expenditure and Reform and the Central Statistics Office.
The report is in the final stages of preparation and I expect to be in a position to publish the results of the review by mid-October.
499. Deputy Michael Healy-Rae asked the Minister for Employment Affairs and Social Protection the status of a carer's allowance for a person (details supplied); and if she will make a statement on the matter. [40173/17]
View answerI confirm that my department received an application for carer’s allowance (CA) from the person concerned on 19 June 2017.
It is a condition for receipt of carer’s allowance in respect of a child who is less than 16 years of age that domiciliary care allowance (DCA) must be in payment in respect of that child.
A DCA application in respect of the child of the person concerned was disallowed and following an appeal, that decision was upheld.
The person concerned has submitted further evidence which is being reviewed by the Social Welfare Appeals Office.
Should this review be successful, their entitlement to Carer's Allowance will be examined and the person concerned will be notified of the outcome.
I hope this clarifies the matter for the Deputy.
500. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection if carer's allowance is payable in the case of a person (details supplied); and if she will make a statement on the matter. [40189/17]
View answerI confirm that my department received an application for carer’s allowance from the person concerned on 12 June 2017. Additional information in relation to the person’s application was requested by a deciding officer on 20 September 2017.
Once the information is received, the application will be processed without delay and the person concerned will be notified directly of the outcome.
I hope this clarifies the matter for the Deputy.
501. Deputy Jan O'Sullivan asked the Minister for Employment Affairs and Social Protection the identities of the security companies contracted by her Department and its agencies to provide security services; if all such companies are in compliance with the new employment regulation order rate for the security industry which has been in force since 1 June 2017; the steps her Department has taken to ensure compliance with the new legal hourly rate of pay; and if she will make a statement on the matter. [40275/17]
View answerMy Department’s security contract is with Secureway at Risk Security (SAR) group. SARs wrote to the Department in July 2017 to advise that they had implemented the Employment Regulation Order (ERO) hourly rate increase from the 1st June 2017.
Only one of the statutory bodies operating under the aegis of my Department has security contracts. The Citizens Information Board (CIB) directly engage the following security firms:-
- C & C Security Ltd
- AP Systems Ltd
- Synergy Security Solutions
- Orbit Security Ltd.
These firms are all fully compliant with the new employment regulation order and CIB has received written confirmation from each of their compliance.
Please note that this only applies to CIB offices and not the wider network of MABS/CIS’s.
502. Deputy Michael Healy-Rae asked the Minister for Employment Affairs and Social Protection the status of a carer's allowance application by a person (details supplied); and if she will make a statement on the matter. [40297/17]
View answerI am advised by the Social Welfare Appeals Office that an Appeals Officer, having fully considered all of the available evidence including that adduced at the oral hearing, has decided to allow the appeal of the person concerned. The person concerned has been notified of the Appeals Officer’s decision.
The Social Welfare Appeals Office functions independently of the Minister for Employment Affairs and Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
I trust this clarifies the matter for the Deputy.
503. Deputy Jan O'Sullivan asked the Minister for Employment Affairs and Social Protection if a person who has been transferred to an organisation (details supplied) can transfer back to the Department placement system in order to pursue a training course relevant to their job prospects; and if she will make a statement on the matter. [40310/17]
View answerParticipants with JobPath receive intensive individual support over a period of up to 12 months to help them tackle barriers to employment and to find jobs. As part of the JobPath service each person is assigned a personal advisor who assesses their skills, qualifications and experience with a particular focus on identifying appropriate training and educational interventions in the context of potential employment opportunities
The JobPath providers arrange for the delivery of a broad range of education and training courses with a particular and strong focus on upskilling the long term unemployed. Some of these courses are provided in-house while others are provided by specialist training providers including the Education and Training Boards (ETBs). In addition, JobPath participants may also apply for the Back to Education Allowance Scheme in order to pursue second and third level courses and will be referred back to the Department for that purpose.
In order to support JobPath providers in referring people to training and education, and to allow jobseekers to benefit fully from the JobPath service, the Department will extend the 12 month JobPath referral period by the duration of any externally delivered approved training course. This can be up to an additional 26 weeks. The JobPath companies will continue to provide appropriate support to the person while they are on such courses.
Where a person is approved for a course of training or education which is over 9 months, the referral to the JobPath service will be cancelled to allow the person to focus on their studies.
I trust this clarifies the process for the Deputy.
504. Deputy John Brady asked the Minister for Employment Affairs and Social Protection if families who are homeowners or are renting private accommodation, are affected by the recent flooding in County Donegal and are availing of support from the humanitarian assistance scheme are entitled to the same financial support and compensation as families renting in local authority owned accommodation; and if not, the reason therefor. [40330/17]
View answer508. Deputy Pearse Doherty asked the Minister for Employment Affairs and Social Protection if her Department will consider allowing for retrospective payments to be made to persons under the humanitarian assistance scheme in respect of applications submitted by flood victims resident in the Finn Valley region of County Donegal who had properties damaged during a major episode of flooding in the area in late 2015; and if she will make a statement on the matter. [40421/17]
View answerI propose to take Questions Nos. 504 and 508 together.
My Department immediately activated its humanitarian assistance scheme, administered by the local Community Welfare Service (CWS), to assist householders in County Donegal affected by flooding following the recent severe weather conditions.
The purpose of the humanitarian assistance scheme is to prevent hardship by providing income-tested financial support to people whose homes are damaged from flooding and severe weather events and who are not in a position to meet costs for essential needs, replacement of household items and in some instances structural repair. In dealing with emergency events of this nature, the Department generally adopts a three stage approach as follows:
- Stage 1 is to provide emergency income support payments (food, clothing and personal items) in the immediate aftermath of the event. A relatively small amount of financial assistance is generally provided initially.
- Stage 2 generally involves the replacement of white goods, basic furniture items and other essential household items. It is not until the flood water abates and houses dry out that the full extent of the damage to homes will become fully known.
- Stage 3 is to identify what longer term financial support or works are required. It could take some time before this stage of response commences and this involves a cross Departmental/Agency response. Works carried out can include plastering, dry-lining, relaying of floors, electrical re-wiring and painting.
My Department has provided financial support under the scheme to some 140 affected households with further payments under stages 2 and 3 being processed. The Government has not set a limit on the amount that can be paid to an individual household under this scheme. Levels of payment depend on the relative severity of damage experienced and the household’s ability to meet these costs ensuring that the funding is appropriately targeted.
Assistance is not provided for losses which are covered by insurance or for commercial and business losses, or generally any loss or damage to private rented accommodation or local authority accommodation. However, my Department’s focus is on ensuring that people’s immediate needs are met and emergency stage 1 payments can be made to persons irrespective of the nature of their accommodation.
I am advised that Donegal County Council is continuing to provide support and assistance to their tenants who were affected by the flooding under separate arrangements to this Department’s humanitarian assistance scheme.
People seeking assistance under the humanitarian assistance scheme should contact their local Intreo Centre where CWS staff are available to offer assistance or contact the Buncrana Intreo Centre on 074 9364600.
In early December 2015, my Department activated the humanitarian assistance scheme to assist householders affected by the severe weather conditions of winter 2015/16. If the Deputy has concerns in respect of a specific household affected by the weather events of that period he should bring the details to the attention of my Department.
I trust this clarifies the matter for the Deputies.
505. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the progress to date in the determination of an appeal in respect of a carer's allowance application in the case of a person (details supplied); and if she will make a statement on the matter. [40341/17]
View answerThe Social Welfare Appeals Office has advised me that an appeal by the person concerned was referred to an Appeals Officer on 21 September 2017, who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.
The Social Welfare Appeals Office functions independently of the Minister for Employment Affairs and Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
I hope this clarifies the matter for the Deputy.
506. Deputy Thomas P. Broughan asked the Minister for Employment Affairs and Social Protection her plans to recruit additional staff to deal with appeals for guardians payments in view of the fact that the current average processing time is approximately 18 weeks; and if she will make a statement on the matter. [40389/17]
View answerMy Department, like all Government Departments and agencies, is required to operate within a staff ceiling figure and a commensurate administrative staffing budget, which for this Department has involved reductions in staff.
The staffing needs for all areas within the Department are continuously reviewed, taking account of workloads, management priorities and the ongoing need to respond to new increasing demands in a wide range of services. This is to ensure that the best use is made of all available resources with a view to providing an efficient service to those who rely on the schemes operated by the Department.
Appeal processing times are kept under constant scrutiny by the Chief Appeals Officer. The Deputy will be aware that significant effort and resources have been devoted in recent years to reducing the length of time taken to finalise an appeal and that as a consequence processing times have improved quite considerably.
The quasi-judicial nature of the appeals system means that there are inevitable time-lags involved. However the system is designed to be flexible and fair and allows for review and submission of further information at all stages. The time taken is proportionate to the complexity of many of the issues under appeal which require a high level of judgement, and the need to ensure due process and natural justice.
The Chief Appeals Officer has advised me that appeal processing times will continue to be a priority for her office.
507. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the progress made to date in her Department on consolidating all means testing under a single national body in order that persons will only apply once for services or entitlements across all Government agencies, as committed to in the programme for partnership Government; and if she will make a statement on the matter. [40395/17]
View answerThe Programme for Government commitment in this area is to "consolidate all means testing under a single national body ensuring a single application process for services or entitlements across all government agencies".
This proposal would be a major project across a range of Government departments and agencies that operate schemes and services on a means/income tested basis of which my Department is just one. Significant operational, legislative and technical challenges would be involved.
In relation to my Department, IT developments in recent years have allowed for the capture and storage of means data and the reuse of that data. Amongst the many potential benefits of this reuse are a reduced administrative burden on staff and customers through greater accuracy of information, a reduced need to repeatedly ask for the same information and the ability to make better-informed decisions regarding reviews.
509. Deputy Róisín Shortall asked the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 149 of 25 May 2017, her plans for the development of an auto-enrolment pension system; and if she will make a statement on the matter. [40423/17]
View answer512. Deputy Róisín Shortall asked the Minister for Employment Affairs and Social Protection the position regarding the action plan for the reform of pensions as mooted by her predecessor; and if she will make a statement on the matter. [40426/17]
View answerI propose to take Questions Nos. 509 and 512 together.
Progressive reform of the pension system is a priority of mine and this Government. To this end, I can confirm the Government’s intention to publish, and commence the implementation of, a pensions reform plan before the end of this year.
The plan will include measures relating to the introduction of a ‘Total Contributions Approach’ to the State pension for new pensioners, reform and simplification of the current supplementary pension landscape and measures required to transpose the EU ‘IORP’ Pensions Directive. However, perhaps the most fundamental reform contained within the plan will be a confirmation of the Government’s intention to develop a new automatic enrolment supplementary retirement savings system for employees without pensions coverage.
The rate of supplementary pension coverage in Ireland is 47% of the working population and this reduces to 35% when the private sector is considered in isolation. Whilst the State pension provides a reasonable basic level of income and guards against poverty in retirement, if measures are not taken to address this low rate of supplementary coverage, many future retirees will experience unwanted reductions in living standards when they reach retirement.
This reform, where the saver will maintain the freedom of choice to opt-out, will encourage long term saving and asset accumulation amongst those who may otherwise suffer a reduction in living standards at retirement. It will increase the wellbeing, financial security and independence of future retirees.
A review of international auto enrolment retirement systems has confirmed that success is dependent on well tested design and securing member trust. To this end, further detailed evidence building and consultation will be undertaken to inform fundamental choices which are required regarding the preferred operational structure and organisational governance for a new system as well as many design elements such as contribution levels, financial incentives and target membership. Correctly positioning/designing each of these will be critical to the success of any system.
To this end, it is my intention to undertake an automatic enrolment open consultation process over the coming months. This process will seek to develop consensus around the principles of our approach to system infrastructure, design and implementation. It will build on our previous engagement with sectoral interests including employer and trade union representatives as well as the pensions industry and consumer and advocate groups.
The objective of planned reforms will be to establish a sound and fit for purpose pension system for the coming decades, one that will shape the retirement landscape to the benefit of our retirees for generations to come.
I hope this clarifies the matter for the Deputy.
510. Deputy Róisín Shortall asked the Minister for Employment Affairs and Social Protection the status of her Department's work to improve the security of investment for those contributing to defined benefit pension funds; her plans to legislate in this area; and if she will make a statement on the matter. [40424/17]
View answerInternationally, as well as in Ireland, Defined Benefit (DB) schemes have been facing increased difficulties over the last two decades. This has been due to volatility in the stock markets, increasing liabilities arising from the demographic pressures of increasing life expectancy, low interest rates and regulatory requirements. Essentially the cost of providing benefits has increased at a rate that has not been covered by the level of the employer and employee contributions to pension schemes and the investment returns earned.
The ongoing decline of defined benefit schemes over the past two decades has seen the number of schemes subject to the funding standard decline from 2,031 in 2000 to approximately 650 such schemes as per figures provided by the Pensions Authority on 1 June 2017. Despite its decline, the DB sector is still a very important sector with assets under management of approximately €62 billion and membership comprised of 100,000 pensioners, 125,000 active members and 435,000 deferred members.
Generally speaking, where schemes have encountered funding difficulties, the process has been managed through dialogue between trustees, employers and members, where efforts are made to reach agreement regarding the steps to be taken. Under Irish law, responsibility rests with the employer and the trustees for ensuring that DB schemes are properly funded and managed.
The Pensions Authority requires that, in setting investment policy, the trustees of a DB scheme must have regard to the need to satisfy at regular intervals the minimum funding standard set down in the Pensions Act.
A number of steps have been taken in recent years to reduce the risks to pension scheme members caused by market volatility. The Social Welfare and Pensions Act 2012 require a DB scheme to hold additional funding in the form of a ‘risk reserve’ by 2023. The function of this ‘risk reserve’ is to provide some protection and long term stability for scheme members against future volatility in financial markets. Additionally, and in appropriate circumstances, the regulator may approve scheme funding proposals that provide for the recovery of their schemes funding over longer periods than was previously the case.
In addition, in order to provide increased investment options for pension schemes the Social Welfare and Pensions Act 2010 and 2011 introduced the option for trustees to purchase sovereign annuities. Pension schemes that purchase sovereign annuities, or the underlying bonds, benefit from a reduction in their liabilities under the funding standard. Buying sovereign annuities for the pensioners has the effect of reducing pensioner liabilities under the funding standard and provides additional funds for the other members of the scheme.
While noting the steps taken thus far, a key priority for the Government is to provide additional protections for scheme members’ pension benefits. It is essential that any new measures recognise the current pensions landscape in Ireland so that a balanced and proportionate approach is developed.
I intend to introduce a number of amendments to the Social Welfare, Pensions and Civil Registration Bill 2017 at Committee Stage which will, amongst other things, ensure that an employer cannot “walk away” at short notice from the pension scheme it is supporting and will seek to address situations where funding proposals are not agreed and put in place. The amendments will act to support existing provisions in the Pensions Act and will encourage employers to ensure that schemes are well funded and managed.
Finally, many of the provisions contained within the IORP II Directive (Institutions for Occupational Retirement Provision) will also support positive reform of the Irish occupational pension sector. The Directive provides for a range of new requirements concerning governance, management standards in schemes, safekeeping of assets, the need for clear and relevant information to members, the removal of obstacles to cross-border provision of pension services and the facilitation of cross border transfer of schemes. There are also provisions that will enhance the powers of the pension regulators for effective supervision of IORP.
Implementation of the Directive will require legislative changes and my officials, together with the Pensions Authority, are working on the transposition process to ensure that any necessary amendments to existing laws, regulations or administrative provisions will be made, or where necessary any new provisions are implemented, to give full effect to the Directive. Standards in relation to occupational pension schemes will be enhanced by the transposition of the IORP II directive.
I trust this clarifies the matter for the Deputy.
511. Deputy Róisín Shortall asked the Minister for Employment Affairs and Social Protection her views on increasing the age at which a person will become eligible to claim a State pension; and if she will make a statement on the matter. [40425/17]
View answerThe Social Welfare and Pensions Act 2011 provided that State pension age will be increased gradually to 68 years. This began in January 2014 with the abolition of the State pension (transition) available from 65 for those who satisfied the qualifying conditions, thereby standardising State pension age for all at 66 years, which is the current State pension age. This will increase to 67 in 2021 and to 68 in 2028.
No further increases are planned at this time. Any need for future increases will depend on a range of factors such as increases in life expectancy, the ratio of working age people to pensioners, employment rates among older workers, pension rates, the prevailing economic environment and the availability of measures and policies to support older workers. Given the timescales involved and the unpredictability of social and economic change in the coming decades, I believe it would be inappropriate for such decisions to be made at this point.
In most cases, it is hoped that workers will continue to work up to the new State pension age. Where this is not possible, and where a person is available for work, there are specific measures which apply to someone claiming Jobseeker’s Benefit from a date after their 65th birthday. Where qualified, these recipients may continue to be eligible for that payment until reaching pension age.
In 2013, the cost of the State pension (transition) was €137 million. Its abolition was not expected to save that amount of expenditure in full, as some people who were affected would alternatively claim working age payments such as Jobseeker's Benefit (albeit at a lower rate than the rate of the State pension), or may claim an Increase for a Qualified Adult in respect of their spouse’s pension.
However, it is estimated that well over half of that cost has been saved each year as a result of this measure, and this would be expected to increase as (a) the number of 65 year olds increases, (b) the change results in a higher percentage of people working while aged 65, and (c) there have been two Budget increases in the rate of the State pension since then. It is estimated that the net saving in 2018 is likely to be in the region of €84 million, and this is expected to rise to €87 million by 2020. These figures do not include future rate increases.
Reversing this decision would, therefore, significantly increase the annual cost of State pensions, and would reduce the funds available to pay for any future increases in the rates of the payment.
The Deputy should note that there is no statutory retirement age in the State, and the age at which employees retire is a matter for the contract of employment between them and their employers. While such a contract may originally have been entered into with a retirement date of 65, in the context of the previous State pension arrangements, there is no legal impediment to the employer and employee agreeing to increase the duration of employment for one or more years, if both parties wish to do so.
In January 2016, an Interdepartmental Group on Fuller Working Lives, chaired by the Department of Public Expenditure and Reform, was established specifically to examine the implications arising from prevailing retirement ages. The final report of the Group made a number of recommendations to support working and retirement practices. This included a request to the Workplace Relations Commission to prepare a Code of Practice under Section 42 of the Industrial Relations Act, 1990 to help manage the engagement between employers and employees regarding retirement issues and longer working. The final report, the recommendations of which were accepted by Government in August 2016, is available on the Department of Public Expenditure and Reform’s website.
I hope this clarifies the matter for the Deputy.
513. Deputy Michael McGrath asked the Minister for Employment Affairs and Social Protection the reason it is necessary to require a person who has been adopted and who does not hold a valid passport or driving licence to provide a copy of the adoption certificate when applying for a public services card; if her attention has been drawn to the upset that this can cause to persons who may have been adopted many decades previously; and if she will make a statement on the matter. [40441/17]
View answerTo ensure that people’s identity is verified to a substantial level of assurance, my Department has implemented an identity registration process called SAFE. That process involves the capture of an individual’s photograph and signature and the verification of identity data. Items of the identity dataset that are verified include the date and place of birth as well as the mother’s birth surname. This information is taken from the birth registration record, or in the case of adopted persons, from the adoption registration record. A PSC is issued following successful completion of the registration process.
For Irish-born nationals, the SAFE registration officers in my Department have direct electronic access to the birth register and so can usually verify these data items without the need for a person to bring their birth cert.
However, these officers do not have similar access to adoption records. Consequently, adopted persons are asked to bring their adoption certificate with them when they attend for SAFE registration.
Details of the registration process and information on the documents which a person should provide are available on the Department’s website at http://www.welfare.ie/en/Pages/Public-Services-Card_holder.aspx.
I hope this clarifies the matter for the Deputy.
