Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

The report of the Commission on Pensions was published on 7 October 2021. It established that the current State pension system is not sustainable and that changes are needed. The report set out a wide range of recommendations in relation to the State pension system and social insurance fund, including PRSI base broadening measures.

In the interests of older people and future generations of older people, the Government intends to consider the comprehensive and far-reaching recommendations in the commission's report very carefully and holistically. The report has been referred to the Joint Committee on Social Protection, Community and Rural Development and the Islands. That committee published its views yesterday. My officials and I will obviously include these in our deliberations over the coming weeks.

Separately, as set out in its terms of reference, the Commission on Taxation and Welfare is considering the report of the Commission on Pensions in the context of its review of potential changes to the social insurance system, including relevant PRSI rate and coverage recommendations. In addition, my officials are examining each of the recommendations and consulting across government through the Cabinet committee system.

It is really important that we complete that work and obtain those views before reaching conclusions on any one recommendation, such as the recommendations to remove the exemption to pay PRSI on supplementary pension income, occupational and personal pensions and public sector pensions. I intend to bring a recommended response and implementation plan to the Government by the end of March this year.

The State pension is the bedrock of the pension system in Ireland. It is extremely effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State pension age and today's young workers, including those who are only starting their careers.

I hope this clarifies the matter for the Deputy.

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