Dáil Éireann Debate, Tuesday - 17 April 2018
277. Deputy Michael McGrath asked the Minister for Finance if his Department has developed a costed proposal for a SSIA type scheme for pension contributions whereby the State will join the individual by contributing money directly to a pension scheme; if so, the estimated cost of such a proposal; and if he will make a statement on the matter. [16598/18]
View answerIn February of this year, the Department of Employment Affairs and Social Protection (DEASP) published a Roadmap for Pensions Reform 2018-2023, following Government approval.
The Roadmap sets out a number of pension reform actions under 6 Strands. Strand 2 proposes the introduction of an automatic enrolment retirement savings system to help individuals accumulate sufficient wealth to sustain personal living standards in retirement. To facilitate the design and development of this automatic enrolment system, the Roadmap commits to publishing a 'strawman' automatic enrolment system. This document is intended as a basis for public consultation. The Roadmap further provides that the design of auto-enrolment will be finalised by the end of the first quarter next year.
Under Strand 3, the Roadmap also allocates a range of tasks to the Interdepartmental Pensions Reform & Taxation Group (IDPRTG) chaired by my Department. Action 3.13 requires the Group to:
"Review the cost of funded supplementary pensions to the Exchequer. To inform decisions relating to financial incentives for retirement savings and underpin the development of the automatic enrolment system (see Strand 2), this will include an assessment of the economic and social benefits delivered and an evaluation of equity in the distribution of tax expenditure on pensions".
My Department along with other stakeholders will work towards finalising the design of auto-enrolment and to completing the tasks allocated to the IDPRTG.
As the Roadmap envisages, the design of auto-enrolment is due to be finalised by end of the first quarter next year and to date no comprehensive assessment of the potential costs to the Exchequer of implementing an 'SSIA type' scheme has been carried out by my Department. Such an assessment, based on the relevant Revenue data, will form part of the design phase of the auto-enrolment system. Work is now commencing on complying with the requirements of the Roadmap for Pensions Reform 2018-2023 including assessing and costing suitable incentives to accompany the introduction of auto-enrolment.
