Seán Power
Ceist:25 Mr. Power asked the Minister for Social Welfare the plans, if any, he has to cater for the problems associated with the increasing ageing population in Ireland; and if he will make a statement on the matter. [22284/96]
Written Answers. - Pension Provisions.
Liam Lawlor
Ceist:74 Mr. Lawlor asked the Minister for Social Welfare the action, if any, he intends to take in response to the recent report by the Economic and Social Research Institute which indicates that the coverage rate for occupational pension schemes fell from 54 per cent in 1985 to 52 per cent in 1995; and the action, if any, he intends to take to ensure that self-employed, part-time and temporary workers and unemployed persons receive adequate pension coverage. [22165/96]
In 1993 the National Pensions Board in its final report Developing the National Pension System set out the aim that there should be a national pension system which would provide pension benefits which would maintain a reasonable relationship with previous income levels, so that established standards of living could be maintained.
Following that report a number of seminars and conferences have been held to consider the effect of the ageing population on pensions in the future. I would like to stress that there is no danger to anyone's pension entitlement. However, this is an issue which we cannot afford to ignore, therefore it will be firmly put on the agenda so that all the options are explored and the necessary decisions taken and implemented so that the retirement years of people in the future are safeguarded and secured.
One of the recommendations of the National Pensions Board was that a survey of occupational pension schemes should be carried out to establish their coverage and adequacy. The last major survey related to 1985 and it was essential that up to date information should be available which would be of considerable assistance when proposals in relation to pensions were being formulated.
Accordingly, the Department of Social Welfare and the Pensions Board jointly commissioned a report from the Economic and Social Research Institute. This report entitled Occupational and Personal Pension Coverage 1995 was published recently.
The report shows that pension coverage is roughly the same now as it was over ten years ago. The overall coverage for those at work stands at 46 per cent while, as the Deputy points out, the coverage rate for employees has fallen from 54.4 per cent in 1985 to 52 per cent in 1995.
Having considered carefully the findings of the report, the Department in conjunction with the Pensions Board is sponsoring a national pensions initiative.
The purpose of the initiative is to facilitate a national debate on how to work towards a national pension system consistent with the aim of providing pension benefits which maintain a reasonable relationship with previous income levels so that established standards of living can be maintained.
This initiative will be a two stage process. Stage one involves the production of a consultation document which will form the basis for general discussion among all interested parties, the social partners and the general public. This document will set out the information and data currently available on pensions coverage in Ireland and the key issues that now need to be addressed. These issues will include coverage, the delivery of this coverage, its efficiency and fiscal and economic implications. The document will also describe the alternative models of pension provision that exist in other relevant countries.
The consultation document will be available early in January. Responses to it will then be invited with a deadline for receipt of these likely to be the end of March 1997.
Stage two of the initiative will then involve: processing and analysis of the responses to the consultation document, reviewing critically selected pension models from other countries, relating these to Ireland and developing options in the Irish context, and preparation of a report including the formulation of recommendations on the actions that need to be taken to achieve a national pension system in line with the aim of the National Pensions Board as articulated in its final report. The target date for the completion of this stage is next summer.
This is a very important time for pensions policy. We need to look comprehensively and very carefully, over a relatively short timeframe, at the present position. We then need to make decisions and, most importantly, to carry those decisions through so that we face up to and deal with the medium and long-term issues to ensure that the living standards of future generations of pensioners are safeguarded.
This national pensions policy initiative is the first step to achieving this.