Dáil Éireann Debate, Tuesday - 1 February 2022
561. Deputy Marian Harkin asked the Minister for Social Protection her views on the recommendation in the report by the Commission on Pensions published in October 2021, which seeks to impose PRSI on occupational pensions for those aged 66 years of age and over; and if she will make a statement on the matter. [5086/22]
View answer563. Deputy Holly Cairns asked the Minister for Social Protection her views on and response to the report of the Commission on Pensions with particular reference to the recommendation concerning charging PRSI on occupational pensions for persons over 66 years of age. [5181/22]
View answerI propose to take Questions Nos. 561 and 563 together.
The Pensions Commission was established in November 2020 to examine the sustainability of the State Pension system and the Social Insurance Fund, in fulfilment of a Programme for Government commitment. The Commission was an independent body comprised of knowledgeable and experienced academics, pension experts, members of civil society and representatives of workers and employers. Once it completed its work and fulfilled its obligations, the Commission was dissolved. The Commission's Report was published on 7th October 2021. The report, Technical Sub-Committee's working papers and submissions made to the Pensions Commission are available on the website, pensionscommission.gov.ie.
The Commission's Report is a comprehensive report that takes account of an assessment of various analyses of population, labour force and expenditure projections; an examination of international approaches; and responses to an extensive consultation process. It has unambiguously established that the current State Pension system is not sustainable into the future and that changes are needed, and it has set out a wide range of recommendations in this regard - including measures to increase Social Insurance Fund (PRSI) income.
The report has been referred to the Joint Committee on Social Protection, Community and Rural Development and the Islands for its views. Separately, as set out in its terms of reference, the Commission on Taxation and Welfare is considering the report of the Pensions Commission in the context of its review of potential changes to the social insurance system.
In the interests both of older people and of future generations of older people, the Government intends to consider the comprehensive and far reaching recommendations in the Pensions Commission’s Report very carefully and holistically. My officials will continue to work over the coming months to examine each of the recommendations. They will consult across Government through the Cabinet Committee system. I think it is really important that we complete that work before reaching conclusions. I intend to bring a recommended response and implementation plan to Government by the end of March 2022.
The State Pension is the bedrock of the pension system in Ireland. It is extremely effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.
I hope this clarifies the matter for the Deputies.
