Vol. 462 No. 8
8 Dr. O'Hanlon asked the Minister for Finance the estimated cost of public sector pensions in 1996; the projected cost of such pensions in 2006; the plans, if any, he has to fund such pensions; and if he will make a statement on the matter. [5575/96]
The estimated cost in 1996 of Exchequer-funded occupational public service pensions is £563 million. The projected cost for 2006 is £678 million. As regards pre-funding these liabilities, the Government has established a commission to examine and report on the occupational pension arrangements for public servants. The question of funding is one of the issues to be considered by the commission whose report is scheduled to be submitted to Government in 1998.
In view of the decrease in the birth rate from a high of 74,000 in 1980 to 47,000 last year does the Minister accept there is an increasing elderly population? It is estimated that the cost of public sector pensions will increase from £1.2 billion to £2.4 billion in the next 25 years. Is he satisfied that the present method of funding such pensions will be sufficient to cover them and, if not, what plans has he to deal with the issue?
As regards the rapidly declining birth rate I am happy to say I contributed towards redressing that trend in the last 16 months. The figures given by the Deputy are incorrect. In the year 2010 the figure will be £772 million; in 2020 it will be £1,224 million and in the year 2030 it will be £1,427 million. That gives cause for considerable alarm. As and from 6 April last year all public servants, including civil servants, are Class A PRSI contributors. It is not unreasonable to presume that there will be an increase in PRSI contributions over the next 30 years but that will not be sufficient to fund the pensions. That is why the commission, which will make a comprehensive report, in 1998 was established.
Does the figure include social welfare pensions or is it solely public sector pensions?
The Deputy asked about public sector pensions and the information I have given relates to the following categories. The breakdown is £105 million for Civil Service pensioners; £69 million for Garda pensioners; £56 million for Defence Forces pensioners; £138 million for retired educationalists; £100 million for retired health workers; £62 million for retired local authority officials and approximately £10 million for other categories. The total for 1995 is £540 million.
