Michael Ferris
Ceist:105 Mr. Ferris asked the Minister for Finance his views on whether public service pensions should continue to be funded on a pay as you go basis; and if he will make a statement on the matter. [10198/99]
Written Answers. - Pension Provisions.
Traditionally, public service occupational pensions have been financed on a pay-as-you-go basis as part of the public service pay bill, with the costs met each year from current revenue and employee contributions. However, as the Deputy may be aware, recent actuarial studies suggest that the cost of public service pensions, expressed in constant price terms, is expected to increase fourfold over the next thirty years. The Commission on Public Service Pensions is considering this matter – including the question of advance funding – as part of its examination of public service pension arrangements. In its interim report, published in November 1997, the commission stated that the evolution of pension costs required careful monitoring. It noted that funding, were it to be introduced on a full or partial basis, would raise significant practical and budgetary issues. It went on to say that it would consider the full range of arguments regarding funding in its final report, taking into account the experience of other countries.
I look forward to considering the forthcoming report of the Commission on Public Service Pensions.