Denis Naughten (Roscommon-Galway, Independent)
Link to this: Individually | In context | Oireachtas source

Will Mr Murdock or one of her colleagues comment on the €20,000 threshold? It is an issue on which we have heard contrasting views from various witnesses who have come before the committee. The Department has strongly made the case that for anyone earning less than €20,000, the level of payment from the contributory State pension is sufficient to make up their potential loss in income, in line with the intention of the auto-enrolment for people earning more than €20,000. Moreover, it has maintained that rather than people on lower incomes having to put aside additional money for a pension contribution when they are trying to pay grocery bills, the priority should be on supporting them to meet their day-to-day needs.

Ms Murdock might comment on that. Could she also comment on the point she made regarding part-time working? This is a significant issue for people, usually women, who for one reason or another do not work full time or do not work full time at various points in their career. As a result of that, they may have an income below the threshold. The hourly rate might be significantly above it, but the annual rate could be below it. Could she elaborate on the points in that regard and how she thinks auto-enrolment could be adapted to address that cohort of the population, considering that it is possible for someone to voluntarily go into auto-enrolment? One would hope that people earning high hourly rates but perhaps working short time would contribute to that.

Ms Murdock raised flexibility, in particular in respect of top-ups. This issue has come up in evidence on a number of occasions.

In her evidence this morning, Ms Murdock mentioned the CPA being an actual pension fund making decisions on investments. She said it has unproven structures. Ms Murdock can correct me if I am wrong, but throughout the OECD, two approaches in general have been taken. One is where an agent of the state gathers the money and private pension funds make the investment decisions. The alternative model that has been used is where a state pension fund makes the investment. Could she explain the reference to "unproven structure" because this approach has been proven, in particular in some of the Nordic countries? I invite her or some of her colleagues to respond to some of those issues.