Dáil Éireann Debate, Wednesday - 10 November 2004
76 Mr. Penrose asked the Minister for Social and Family Affairs his views on whether radical action is required if the commitment to ensure that 70% of workers make pension provision by 2006 is to be met; and if he will make a statement on the matter. [28191/04]
Amharc ar fhreagra129 Ms Burton asked the Minister for Social and Family Affairs the number of persons in possession of a PRSA account; if he has satisfied himself that this number is in keeping with Government targets; and if he will make a statement on the matter. [28198/04]
Amharc ar fhreagraI propose to take Questions Nos. 76 and 129 together.
Information on the number of personal retirement savings accounts, PRSAs, opened is received by the Pensions Board from PRSA providers at the end of each quarter. The latest figures available relate to the end of September 2004 and these show that 37,086 accounts have been opened with a total asset value of €106.6 million.
It is Government policy to encourage people to participate in occupational and private pension arrangements so that they can, when they retire, aim to maintain their pre-retirement standard of living. The national pensions policy initiative suggested that up to 70% of those in employment, who are 30 years of age or over, will need to supplement their social welfare pension for this purpose. At present, over 59% of people in this target group have supplementary pensions cover.
PRSAs were launched in 2003 and are one of the main policy instruments being used in pursuit of Government targets in this area. The Government is also undertaking a pensions awareness campaign, through the Pensions Board, to encourage take up of all types of private and occupational pensions, not just PRSAs. Since the launch of PRSAs, the numbers opening accounts has grown steadily. In September 2003, the number of people with accounts was 6,707 and, as already indicated, this had grown to over 37,000 by the end of September this year. The number of people participating in occupational pension schemes increased by 2% in 2003.
Research shows that there is now a high level of awareness of pensions issues amongst the general public and the challenge is to translate this into increased coverage. The Pensions Board is running a targeted awareness campaign this year aimed at groups with low pensions coverage. It has also been involved in an extensive control project to identify employers who are not honouring their legal obligations with regard to access to PRSAs for their employees. Some 64,000 employers have been contacted and the Pensions Board is currently analysing the responses received.
The take up of PRSAs and pensions coverage generally is being monitored closely by my Department and there is no doubt that the overall number of people with pensions has increased. Under legislation a review of the overall coverage position is required by September 2006 and, at that stage, the nature of any further action required in this area will be decided on.
