Oireachtas Joint and Select Committees

Wednesday, 5 March 2014

Joint Oireachtas Committee on Education and Social Protection

Pensions Reform: Discussion

1:40 pm

Photo of Brendan  RyanBrendan Ryan (Dublin North, Labour) | Oireachtas source

While working back from the previous speaker, I have a couple of points to raise. Mr. Phelan referred to a discriminatory levy and was challenging of Government decisions in that regard. As for the intention of such levies at the time they were implemented, I seem to recall it was that some portion of these levies would come out of the funds themselves rather than being passed on to individual pension members. To what degree has the burden of these levies been shared between the funds and their members? Has the entire burden been passed on to members or did the funds themselves absorb much of it? In a similar question to that asked by Deputy Ó Snodaigh concerning the association's charge that €2.9 billion is not the figure, I would be interested in learning what, according to its calculations, is the actual figure.

The next question is addressed to Mr. Fergus Whelan of the Irish Congress of Trade Unions. What would ICTU ask be done now to address the issues Mr. Whelan has described as being currently in crisis mode? It has been stated that there has been an acceleration in the winding up of schemes. Does that accord with the sense by the Department of Social Protection of what is going on or to what would it ascribe it? Do the representatives from the Department agree with that comment? I seek to establish what is the Department's understanding regarding the 1.5% levy that has been extended for one further year. Is there any guarantee the levy will come to an end after this one further year and what is the Department's expectation in that regard? As for the White Paper that is the subject for today's discussion, it has been suggested that the only additional feature to be introduced is some mention of fairness. In the Department's view, what new elements will it contain that will pose a challenge in the Irish situation?

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