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

I thank the Deputy for raising this issue. The pensions commission’s report established that the current State pension system is not sustainable into the future without changes. In this regard, it set out a wide range of recommendations, including potential measures to broaden the PRSI base. In the interests both of older people and future generations of older people, the Government is currently considering these comprehensive and far-reaching recommendations very carefully.

As part of this consideration, the commission’s report and recommendations were referred to the Joint Committee on Social Protection, Community and Rural Development and the Islands and also to the Commission on Taxation and Welfare for their views. The committee published its views on 2 February 2022. The Commission on Taxation and Welfare submitted its comments on the PRSI-related recommendations at the end of February and indicated its support for the broad approach recommended by the pensions commission. These various views are now being considered as part of our deliberations and the Government will finalise its position in the coming weeks. It is really important that we complete that work before reaching conclusions on any one recommendation, such as the commission's recommendation to remove the exemption to pay PRSI on supplementary pension income, occupational and personal pensions and public sector pensions.

As the bedrock of the pension system in Ireland, the State pension is very effective at ensuring our pensioners do not experience poverty. This Government is committed to ensuring this remains the case for current pensioners, those nearing State pension age and today’s young workers. I hope this clarifies the matter for the Deputy.

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