Thomas P. Broughan
Ceist:24 Mr. Broughan asked the Minister for Social, Community and Family Affairs the progress, if any, made by the interdepartmental working group on the introduction of personal retirement savings accounts. [6433/99]
Written Answers. - Pensions Provisions.
Derek McDowell
Ceist:34 Mr. McDowell asked the Minister for Social, Community and Family Affairs when the reports being prepared by the working groups set up following the report of the pensions board initiative in 1998 will be available to him; and if he will make a statement on the matter. [5446/99]
I propose to take Questions Nos. 24 and 34 together.
The Pensions Board report, Securing Retirement Income, on the national pensions policy initiative, NPPI, was published in May 1998.
As set out in the Government's response, Action on Pensions, published with the report, the Government broadly welcomed the thrust and recommendations of the report, in particular the board's target of 70 per cent occupational pensions coverage. To progress the main recommendations made by the board in the report, working groups have been set up as follows:
(i) to examine fully the recommendation for an explicit mechanism to fund, at least partially, the future costs of social welfare pensions. This group is chaired by the Department of Finance and is therefore the responsibility of my colleague, the Minister for Finance;
(ii) to progress the recommendation to increase Second Pillar coverage and the mechanism suggested for achieving this – namely, the personal retirement savings accounts, PRSAs.
The Government has accepted this recommendation, in principle and the working group, which is chaired by my own Department, is making good progress in its examination of the various issues. The group, for example, plans to turn its attention shortly to discussions with potential providers of PRSAs. It is hoped that the group will report this year;
(iii) to further examine and advance the proposals to introduce a simplified and more flexible tax regime for pensions. This working group is chaired by the Department of Finance and is therefore the responsibility of my colleague the Minister for Finance;
(iv) to bring forward proposals in relation to an effective awareness/education programme. Again, the Government is supportive of the proposals in this regard. The importance of clear and easily understandable information in the pensions area cannot be underestimated. I have recently received an initial report on this for consideration from the Pensions Board.
Each of the above groups comprises representatives of the relevant Departments and the executive of the Pensions Board. The outcome of the PRSA group's deliberations will be reflected in a comprehensive Pensions Bill which I hope to publish later this year or early in 2000.
I expect to make provision in this Bill for a number of other proposals from the board regarding occupational pensions including access, vesting, preservation and revaluation. In the context of preparations for the Bill, I will also be considering reports from the board in relation to the treatment of scheme surpluses, equal treatment, a pensions ombudsman and a compensation fund and the indexation of occupational pensions.