Oireachtas Joint and Select Committees

Wednesday, 17 November 2021

Joint Oireachtas Committee on Social Protection

Report of the Commission on Pensions: Discussion (Resumed)

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent) | Oireachtas source

Apologies have been received from Deputy Paul Donnelly. Before we commence, I remind members participating remotely that they must do so from within the precincts of Leinster House.

Today, we convene to continue our discussion on the recently published report of the Commission on Pensions. We are all aware that the State pension is valued by all of society and it is the bedrock of the pension system in Ireland. It is extremely effective at preventing pensioners from falling into poverty, and we want to make sure that this remains the case into the future.

The Commission on Pensions chaired by Ms Josephine Feehily was an independent body comprising pension experts, academics and workers' representative groups. As Members will be aware, the committee made its own submission to the commission with 18 specific recommendations. The commission has completed its work and a comprehensive report was published in October. The report stated that the current State pension is not sustainable in its current form and changes are needed. The population, as we know, is set to increase from 5 million currently to over 6 million by 2050, which is something that we need to plan for in order to ensure that older people have an adequate pension and a safety net to keep them out of poverty.

There will also be fewer working age people supporting each older person. Currently, 4.5 working-age people support each person over the age of 65 but this is set to halve to 2.3 working-age people per person over the age of 65 by 2051. It is important to note that the proportion of older people in receipt of a fully Exchequer-funded non-contributory State pension is decreasing steadily and will continue to do so. Eventually everybody will have paid some entitlement to a State contributory pension into the future. There are clear challenges in ensuring the sustainability of State pensions for future generations. This has been known for many years and confirmed in the report of the Commission on Pensions.

The Government has asked this committee for our views on the recommendations set out in the report. This follows on the from the committee's remit and our recent submission to the Commission on Pensions. In this regard, I welcome Ms Josephine Feehily, Chairperson, Commission on Pensions, and Ms Roma Burke, who is the Chairperson of the technical subgroup, Commission on Pensions. I also welcome Mr. Tim Duggan, Assistant Secretary, and Mr. Alan Flynn, principal officer, Department of Social Protection. All of the witnesses are very welcome here this morning.

Witnesses are reminded of the long-standing parliamentary practice that they should not criticise or make charges against any person or entity by name or in such a way as to make him, her or it identifiable or otherwise engage in speech that might be regarded as damaging to the good name of the person or entity. Therefore, if the witnesses' statements are potentially defamatory in respect of an identifiable person or entity, they will be directed to discontinue their remarks. It is imperative that they comply with any such directions.

Witnesses are reminded that full parliamentary privilege only applies to those participating from within the precincts of Leinster House. Witnesses participating remotely should exercise caution in terms of their utterances accordingly and be attentive to the direction of the Chair in this regard.

Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the Houses or an official either by name or in such a way as to make him or her identifiable.

I call Mr. Tim Duggan to make his opening remarks, which will be followed by a presentation to the committee by Ms Josephine Feehily.

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