John O'Donoghue
Ceist:77 Mr. O'Donoghue asked the Minister for Social Welfare the extent to which the specific recommendations of the final report of the National Pensions Board have been implemented to date. [18571/96]
Written Answers. - National Pensions Board Report.
The final report of the National Pensions Board Developing the National Pension System is a comprehensive report which was published in December 1993. It deals with the three elements that make up the national pension system viz. the social welfare pension system; occupational pension schemes; and personal pension arrangements.
The National Pensions Board report said that it considered that the aim of the national pension system should be to provide pension benefits which maintained a reasonable relationship with previous income levels, so that establishment standards of living can be maintained and I would fully support this approach. The report continued that "having regard to existing levels of coverage, international experience and the number of small employers in Ireland, the Board concluded that it is highly unlikely that the present system that is compulsory social insurance and voluntary occupational schemes or personal pension arrangements in the case of the self employed and employees who are not members of an occupational scheme, will ever achieve the completeness and the level of coverage which this aim requires".
As a first step to advancing options to increase coverage the National Pensions Board recommended that a survey of occupational pension schemes should be undertaken. This survey, which was commissioned jointly by the Department and the Pensions Board, is currently being finalised by the Economic and Social Research Institute and will be presented to me on 30 October. This study will give essential up to date information on occupational cover. As a follow on to this research I will be announcing a major pensions initiative to examine pensions coverage issues further. This will culminate in the publication of a consultation document early next year which will facilitate a national debate on how to work towards a national pensions system which achieves the overall aim set out by the National Pensions Board.
A number of specific proposals in the National Pensions Board report have already been implemented. These include (1) Pensions to be paid to widowers on the same basis as proposed for widows — this was introduced with effect from October 1994; (2) The conditions for homemakers to acquire pensions in their own right to be considerably eased — this came into effect in April 1994; (3) Full PRSI is payable by all new entrants to public sector employments — implemented from April 1995. In addition a Commission on Public Service Pensions was set up by the Minister for Finance in 1996 to examine and report on the pensions terms of public servants. This Commission is to report in 1998; (4) Increasing the earnings disregard in respect of Lone Parents Allowance — this came into effect from July 1994 and will be further improved from next January so as to improve the incentive for a lone parent to take up employment; (5) An actuarial review of the projected long-term costs of social welfare pensions to be undertaken — this will be initiated in consultation with the Pensions Board later this year. These and other issues relating to funding issues are addressed in the Social Insurance Discussion document.
The National Pensions Board also recommended that equalised rates of social insurance contribution should be calculated over a 10 year period to meet the changing costs of social insurance benefits. Consideration will be given to bringing forward proposals in this area following the completion of the actuarial review. The remaining proposals, which largely relate to entitlement to a wider range ofpro-rata pensions, are currently being considered within my Department and I hope to be in a position to bring forward proposals in this regard in the context of the next budget.