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Social Insurance Fund

Dáil Éireann Debate, Wednesday - 16 November 2011

Wednesday, 16 November 2011

Ceisteanna (164, 165, 166)

Thomas P. Broughan

Ceist:

164 Deputy Thomas P. Broughan asked the Minister for Social Protection the levels of the social insurance fund each year from 2007 to 2011; the size of the deficit in the social insurance fund in absolute and % terms for each of the same years; and if she will make a statement on the matter. [35075/11]

Amharc ar fhreagra

Freagraí scríofa

The information requested by the Deputy is provided in the following table:

Year

Income

Expenditure

Surplus / Deficit

As % of expenditure

€000

€000

€000

2007

7,834,147

7,250,990

583,157

8.0%

2008

8,144,410

8,399,739

-255,329

-3.0%

2009

7,297,601

9,784,225

-2,486,624

-25.4%

2010

6,709,681

9,460,835

-2,751,154

-29.1%

2011

7,148,371

9,054,539

-1,906,168

-21.1%

The information shown in respect of 2007 to 2010, inclusive, is the out-turn for each year. The information shown in respect of 2011 is the Estimate published in the Revised Estimates Volume. From its inception, social insurance spending was funded on a tripartite basis, with contributions coming from employers, workers and the Exchequer. The Exchequer is the residual financier of the Social Insurance Fund and Exchequer contributions were the norm over 40 years. For example in 1967, the State contribution was 38% of fund expenditure and almost 29% in 1985. However, no Exchequer contributions were required between 1996 and 2009 as the Fund was in surplus on foot of contributions from employers and workers. The Social Insurance Fund has incurred an operating deficit each year since 2008. Total spending in 2008 exceeded total income in 2008 and that pattern has been repeated in subsequent years. This deficit was funded in 2008 and 2009 using the fund's cash reserves accumulated in the earlier years of operating surplus. The remaining balance of the accumulated surplus was fully depleted during 2010, with the shortfall in 2010 and again in 2011 being met by way of Exchequer subvention from Vote 38 in accordance with section 9 of the Social Welfare Consolidation Act 2005.

Thomas P. Broughan

Ceist:

165 Deputy Thomas P. Broughan asked the Minister for Social Protection if she will make it a priority to ensure the social insurance fund is fully funded from 2012; and if she will make a statement on the matter. [35076/11]

Amharc ar fhreagra

Thomas P. Broughan

Ceist:

166 Deputy Thomas P. Broughan asked the Minister for Social Protection in order to balance the social insurance fund, if she will consider a social insurance payment for all types of income, including rental and currently non-assessed income; the estimated yield if social insurance was extended to all incomes; and if she will make a statement on the matter. [35078/11]

Amharc ar fhreagra

I propose to take Questions Nos. 165 and 166 together.

The Social Welfare (Consolidation) Act, 2005 requires regular actuarial reviews of the financial condition of the Social Insurance Fund. The last such review was published in 2007 and was based on the position as at 31 December 2005. The key objectives of the review were to project future contribution income to and benefit outgo fro the Fund. The review also considers the adequacy or otherwise of the current contribution rates to the Fund, the impact of a number of possible changes to the Fund's benefit / contribution terms, and the value-for-money provided by the Fund in a range of individual circumstances. The next actuarial review will be published in 2012.

Measures such as those referred to by the Deputy are considered against this background and in the context of Budget deliberations. It is not possible to quantify potential yield in the absence of specific proposals.

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