Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

Our pension system was set up over a century ago to provide an adequate and sustainable standard of living, and to prevent an unwanted reduction in living standards when people retire. As the Deputy will be aware, there are a number of challenges currently facing the Irish pensions system, including the sustainability of the system over the longer term in light of demographic change, rising life expectancy and the adequacy of contribution levels and benefits. While the State pension was intended to guard against extreme poverty, our expectations have risen since then and rightly so. People now expect and should expect a decent life and comfort in retirement.

Without change, a majority of our citizens will rely largely on the State pension in retirement unless the overall pension system is reformed. The cost of maintaining our current standards must be funded and increased longevity has huge implications for spending on State pensions.

I have highlighted previously that pension reform will be a priority of my Department and, earlier this year, I confirmed an intention to develop, publish and commence the implementation of an action plan for the reform of pensions. It is my intention that this action plan will be published this year upon completion of the required developmental work. This action plan will include a roadmap for the reform of the State pension, rationalisation and reform of the defined benefit pension landscape, transposition of the Institutions for Occupational Retirement Provision, IORP2, Directive and the introduction of auto-enrolment defined contribution pensions for all working people which I discussed earlier.

In respect of interactions with my British counterparts, I had one bilateral meeting in Brussels some weeks ago with one of my counterparts and will travel to London in the first week of February to meet the Secretary of State for Work and Pensions, Damian Green. Among the issues being discussed are pension rights as there are 35,000 people in this country and 135,000 people in the other jurisdictions who receive part of their pension from the United Kingdom. I am determined to ensure those pensions rights are protected.

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