Mary Upton
Ceist:412 Dr. Upton asked the Minister for Social and Family Affairs her plans to encourage members of the public to provide for private pensions; and if she will make a statement on the matter. [19364/02]
Written Answers. - Pension Provisions.
The Pensions Board report on the national pensions policy initiative estimated that 70% of workers over 30 years of age require supplementary pension cover to maintain their pre-retirement standard of living. At present just over 50% of people have such cover. The Government aims to increase private pension coverage in line with the target set in the national pensions policy initiative, and in this regard, the introduction of personal retirement savings accounts, PRSA, provided for in the Pensions (Amendment) Act, 2002, will be a key instrument of this strategy.
PRSAs are a new pensions vehicle aimed at facilitating and increasing pension coverage for all classes of people including employees, self employed, homemakers etc. Participation in a PRSA arrangement will not be compulsory but employers will be required to facilitate access to a PRSA for their employees if they do not already offer an occupational pensions arrangement. The Pensions Board will commence approving PRSA products in November and it is expected that the new products will be available to the public early in 2003. An extensive pensions information and awareness campaign is also planned for next year to encourage members of the public to participate in private pension provision. There is a statutory requirement to review the effectiveness of the strategy to increase private pensions coverage within three years.