Dáil Éireann Debate, Wednesday - 26 September 2007
178 Deputy Jan O’Sullivan asked the Minister for Social and Family Affairs if he is satisfied that there are adequate resources in the social insurance fund to fund the proposed increase in pensions to at least €300 per week; if he will provide an indication of the anticipated level of increase in Budget 2008; and if he will make a statement on the matter. [20721/07]
Amharc ar fhreagraThe Programme for Government contains a commitment to ‘Increase the basic State pension by around 50% to at least €300 per week by 2012'. Changes to pension rates are considered in a budgetary context and will be announced in the forthcoming budget. It is estimated that the cost of increasing contributory pensions, which are financed through the Social Insurance Fund, to €300 would be €1,705 million in a full year. The exact effect of such an increase on the Social Insurance Fund would be contingent on the sequencing of changes to pension rates of the period to 2012 but, in the short term, the Fund has sufficient resources to provide for such an increase. However, over the medium term such a change would have the effect of eroding the current surplus of the Social Insurance Fund.
