Katherine Zappone (Independent) | Oireachtas source

In a 2013 report on the pension system in Ireland the OECD found that private pension coverage in occupational and personal pensions is uneven and needs to be increased urgently. The OECD found that only 41.3% of workers, including those in the public sector, aged between 20 and 69 years were enrolled in a funded pension plan.

As the Minister of State is aware PRSAs were first introduced in 2002 and were regarded as an attractive means of increasing pension coverage particularly in certain sectors of the workforce. PRSAs are a far more straightforward form of pension. Since they are personal to the worker, they are highly portable. This makes them particularly suitable for part-time workers - a large percentage of part-time workers are women - or workers who change jobs frequently and so on.

Initially there was a good take-up of PRSAs. However, the numbers began to fall off significantly when changes in budget 2011 meant that in stark contrast with the position regarding traditional pensions, employer contributions to PRSAs were subjected to USC. This meant workers with a PRSA saw the USC make a bigger dent in their take-home pay than a worker holding a more traditional pension - often these higher paid and male workers. Not only is this fundamentally wrong, it is also discriminatory. The measure disproportionately impacts on the lower-paid. We tabled the recommendation to place PRSAs on an equal tax footing with other employer pension arrangements. Along with Senator Quinn, I urge the Minister of State to accept the recommendation.