Willie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

The general principle on which the Government seems to be operating in regard to pensions and the recommendations, as I understand them, of the OECD in its recent pensions report suggest that we will have to secure the pension base in this country and that the only way this can be done is by people contributing more, although certainly getting more benefits. However, this is a situation where people are expected to contribute more but, by definition, will get absolutely nothing for their extra contribution. Does that not fly in the face of the direction in which we are supposed to be going? How much more can people contribute?

People who were not subject to PRSI on this element of their income are now expected to pay henceforth at 4% with nothing in return. I am not suggesting they get an A type contribution in return. What I am simply suggesting is that it is counted as an S type contribution which, as the Minister knows, is much less valuable than an A type contribution because it entitles people to fewer benefits but it could make the difference. For example, in the case of a contributory pension, it could make the difference as to what band a person comes into in regard averaging how many contributions in total he or she has paid. It is very regrettable that we are introducing extra pay-related social insurance into categories which did not bear it previously but giving absolutely nothing in return.

See this speech in context