Vol. 492 No. 5
113 Mr. Callely asked the Minister for Social, Community and Family Affairs the likely increase in the number of people entitled to a social welfare pension over the next five and ten years; the proposals, if any, he has to meet these demands; and if he will make a statement on the matter. [14629/98]
): The actuarial review of social welfare pensions, commissioned by my Department, was published in September 1997. The review outlines the projected increase in the numbers of pensioners over the 50 year period from 1996 to 2046. The review found that while the funding position is relatively stable for the next 20 years, the position thereafter, when a large increase in the older population is projected, cannot and should not be ignored. The following table sets out the projected numbers of pensioners in the years 2001, 2006 and 2011. The Government is committed to the development of the social insurance system and to increasing the maximum personal rate of contributory pensions to £100 per week by 2002. Significant progress was achieved in this direction in the 1998 budget. The budget provided for a general increase of £3 per week in all social welfare payments and an overall increase of £5 per week in the maximum personal rates of payment to all pensioners aged over 66 years. The level of increase in social welfare pensions in budget 1998 was well ahead of the expected increase in inflation and the increase in average earnings.
Securing Retirement Income, the report of the Pensions Board relating to the national pensions policy initiative, was launched by me in May 1998. This report contains wide ranging recommendations regarding future pension provision, including social welfare and occupational pensions. The report recommends, in relation to social welfare pensions, that consideration should be given to establishing an explicit fund to fund, at least partially, the prospective growth that is expected to occur in social welfare old age pensions. The report also recommended that the entitlement component of social insurance should be retained, that it would be desirable to increase social welfare pensions, over the medium term, in line with the growth in earnings and that a target rate of 34 per cent of average industrial earnings should form a backdrop to the achievement of the Government's £100 per week target.
I welcome this report and, in my response of 7 May last, I set out an action plan relating to its recommendations. My response incudes a commitment to establish an interdepartmental working group to examine the recommendation regarding the pre-funding of future social welfare pensions and reiterates the Government commitment to providing a pension of £100 per week by 2002 which requires further real increases in pension rates. The action plan, for the first time in the history of the State, sets out a clear Government strategy towards securing the future of older persons in our country. I am committed to the enhancement and development of the social welfare system and strongly believe that the implementation of this action plan will put our pension system on a sound basis into the next millennium.
|
Year |
Contributory |
Non-Contributory |
Total (1) |
||
|
Full Rate |
Modified Rate |
Self Employed Rate |
|||
|
1996 |
261 |
13 |
0* |
122 |
396 |
|
2001 |
285 |
14 |
12 |
105 |
416 |
|
2006 |
320 |
14 |
23 |
88 |
445 |
|
2011 |
364 |
14 |
40 |
73 |
491 |
