Kathleen Funchion
Ceist:574. Deputy Kathleen Funchion asked the Minister for Social Protection if there will be a 4% PRSI charge for occupational pensions; and if she will make a statement on the matter. [13875/22]
Amharc ar fhreagraTuesday, 22 March 2022
Ceisteanna (574)
Freagraí scríofa
The Pensions Commission was established in November 2020 to examine the sustainability of the State Pension system and the Social Insurance Fund, in fulfilment of a Programme for Government commitment. The Commission was an independent body comprised of knowledgeable and experienced academics, pension experts, members of civil society and representatives of workers and employers. Once it completed its work and fulfilled its obligations, the Commission was dissolved. The Commission's Report was published on 7th October 2021. The report, Technical Sub-Committee's working papers and submissions made to the Pensions Commission are available on the website, pensionscommission.gov.ie.
The Commission’s Report is a comprehensive report that takes account of an assessment of various analyses of population, labour force and expenditure projections; an examination of international approaches; and responses to an extensive consultation process. It established that the current State Pension system is not sustainable into the future and that changes are needed. It has set out a wide range of recommendations in this regard, including PRSI base broadening measures.
The Government agreed in October 2021 that the Commission’s report and recommendations would be referred to the Joint Oireachtas Committee on Social Protection, Community and Rural Development and the Islands and also to the Commission on Taxation and Welfare for its views. The Committee published its views on the 2nd February 2022 and the Commission on Taxation and Welfare submitted its comments on the Pensions Commission’s PRSI related recommendations at the end of February. All of these views will be considered as part of our deliberations over the coming weeks.
In the interests both of older people and of future generations of older people, the Government intends to consider the comprehensive and far-reaching recommendations in the Pensions Commission’s Report very carefully and holistically. My officials are examining each of the recommendations and in this regard will continue to consult across Government through the Cabinet Committee system. I think it is really important that we complete that work before reaching conclusions on any one recommendation, such as the recommendation to remove the exemption to pay PRSI on supplementary pension income (covering both occupational & personal pensions, and public sector pensions). My intention is to bring a holistic recommended response and implementation plan to Government by the end of March this year.
The State Pension is the bedrock of the pension system in Ireland. It is extremely effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.
I hope this clarifies the matter for the Deputy.