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Pensions Reform

Dáil Éireann Debate, Thursday - 14 October 2021

Thursday, 14 October 2021

Questions (131)

Neale Richmond

Question:

131. Deputy Neale Richmond asked the Minister for Social Protection if pension contributions will be liable for PRSI; if, when drawing down a pension it will be liable for PRSI; her views on whether it is necessary for the same pension to be charged PRSI on two occasions; and if she will make a statement on the matter. [50210/21]

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Written answers

The Pensions Commission was established, inter alia, to develop options for Government to consider in addressing the sustainability of the State pension system and the social insurance fund. Its Report was published on the 7th of October 2021.

The Commission’s deliberations on the policy options available led it to conclude that, as well as increasing social insurance contribution rates, broadening the base of social insurance contributors should be examined in order to increase social insurance contribution income, strengthen the contributory principle and maintain inter-generational equity.

The Government has agreed that the Commission's report will be sent to the Joint Oireachtas Committee on Social Protection to seek that Committee's views on the Commission's recommendations.

Separately, as set out in its terms of reference, the Commission on Taxation and Welfare will consider the report of the Pensions Commission in the context of its review of potential changes to the social insurance system.

The Commission’s report is being referred to the Cabinet Committee on Economic Recovery and Investment, for consideration over the next six months with a view to bringing a recommended response and implementation plan to Government by the end of March 2022. This is in line with the Programme for Government commitment that it will take action with regard to the recommendations of the Commission within six months of receipt of its report.

I trust this clarifies matters for the Deputy.

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