Tom Hayes (Tipperary South, Fine Gael)
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Question 71: To ask the Minister for Social and Family Affairs his plans to encourage more women to take up pensions; and if he will make a statement on the matter. [17189/05]

Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 73: To ask the Minister for Social and Family Affairs if he plans to introduce a new pensions scheme to encourage persons who have opened SSIA accounts to continue saving their money as pensions; and if he will make a statement on the matter. [17125/05]

Dinny McGinley (Donegal South West, Fine Gael)
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Question 87: To ask the Minister for Social and Family Affairs if, with regard to the current review of the pension system here, his Department has come to any decision; if not, when he expects decisions to be made on the incentives or measures which will be put in place to encourage the 400,000 women in the labour force who do not have any pension payments system in place to open pensions; and if he will make a statement on the matter. [17201/05]

Eamon Gilmore (Dún Laoghaire, Labour)
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Question 98: To ask the Minister for Social and Family Affairs if his attention has been drawn to a new study by the Economic and Social Research Institute showing that Irish pensioners have the worst deal in Europe and that the entire pensions system is in need of serious reform; if he has plans to conduct serious reform of the pensions system; and if he will make a statement on the matter. [17120/05]

Willie Penrose (Westmeath, Labour)
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Question 112: To ask the Minister for Social and Family Affairs if his attention has been drawn to recent comments from the general secretary of the Irish Congress of Trade Unions that thousands of workers are sleepwalking into old age poverty due to not having a pension; if he has plans to address this situation; and if he will make a statement on the matter. [17111/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 71, 73, 87, 98 and 112 together.

It is Government policy to encourage people to participate in occupational and private pension arrangements so that they can, when they retire, maintain their pre-retirement standard of living. To this end a range of measures have been introduced in recent years, including personal retirement savings accounts, PRSAs, mandatory employer PRSA access where occupational schemes are not available and an ongoing national pensions awareness campaign.

In terms of overall occupational and private pensions coverage, CSO figures for the first quarter of 2004 show that 52.4% of persons in employment have a supplementary pension. Out of a national workforce of some 2 million people, an estimated 900,000 do not have a private or occupational pension to boost their incomes in retirement. The coverage rate for women is 46.8% against 56.3% for men. We must improve on this situation and, in that regard, I share the concerns of the Irish Congress of Trade Unions about people who have not made adequate provision for their retirement.

The key target group for Government action in the supplementary pensions area is those who are 30 years of age and over. The national pensions policy initiative suggested that up to 70% of this group will need to supplement their social welfare pension to maintain living standards in retirement. The most recent CSO figures suggest that 59.1% of people in this group have the necessary pensions cover and this is a small increase on the 2002 figure of 57.4%.

Over the past three years the Pensions Board has run a national pensions awareness campaign which is designed to increase awareness of pensions issues among the public and to encourage pensions take up. A total of €1 million was spent on the campaign through 2003 and 2004 and further resources have been allocated to facilitate the campaign in the current year. As well as raising general awareness, the campaign has also focused on areas of the country and sections of the population with lower levels of pensions take up. The 2004 campaign featured a number of special promotions aimed specifically at women.

There is no doubt that progress on pensions coverage is being made as, in recent years there has been a steady increase in the number of people taking out PRSAs and in those participating in occupational schemes. However, at this stage, it has to be accepted that at the present rate of progress we will not achieve our targets within any kind of reasonable timescale. Review of pensions coverage and related issues is required to be completed by September 2006. As coverage is unlikely to improve dramatically over the next year, in February, I asked the Pensions Board to commence work on a comprehensive review of our overall pensions strategy.

A one size fits all retirement regime may not best reflect the needs and wishes of Irish people in the 21st century. The review will be wide ranging and will include an examination of the appropriateness of the original coverage targets suggested in the national pensions policy initiative, scheme management, aspects of funding, incentives available to encourage pensions take up and possible alternatives to our present arrangements. With regard to the latter, I have not ruled out some type of mandatory regime and the Pensions Board is examining the options available with particular regard to the position in other countries. The role the State might have in future pension provision is also being examined.

With regard to incentives generally, I am aware of the potential of maturing SSIAs as a way of increasing pensions coverage and I have asked the Pensions Board to look at how we might take advantage of that. Work on the review is ongoing and I am anxious to ensure that it is completed in the shortest possible timescale so that I can review the situation and decide what further action is required in this area. At this stage I expect to receive the report of the Pensions Board in September. This report will take account of the various submissions made to the board and the recent ESRI report.

Internationally, Governments are trying to deal with the challenge of funding pensions for an older population that is generally living longer and healthier lives. It is essential that we take action sooner rather than later so that we can deliver on our commitment to ensure an adequate retirement income for all.

Michael D Higgins (Galway West, Labour)
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Question 74: To ask the Minister for Social and Family Affairs if his attention has been drawn to a recent survey by the Organisation for Economic Co-operation and Development showing that Irish pensions, on average, are among the lowest in the developed world at less than one third of final income; if his attention has been drawn to the fact that this survey states that Ireland has the lowest pension rate at average earnings at 30.6%; and if he will make a statement on the matter. [17121/05]

Brian O'Shea (Waterford, Labour)
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Question 111: To ask the Minister for Social and Family Affairs if his attention has been drawn to the fact that the State pension here is among the worst in the western world and that the average State pension amounts to only 31% of average earnings before retirement; if he has plans to reform the pensions system; and if he will make a statement on the matter. [17126/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 74 and 111 together.

The Irish pensions system is unique, combining as it does a flat rate State payment and a voluntary supplementary pensions sector designed to provide the earnings related element of retirement income. The comparisons in the OECD survey are valid in so far as they focus on income from State cash payments. However, they do not provide a full picture of pensioners' incomes because they exclude very important elements of the overall pensions system. In particular, income from occupational and private pensions, which is extremely important in the Irish context, as well as the non-cash supports provided through the household benefits scheme are not counted. A recent ESRI report on pensioners' incomes and replacement rates in 2000 estimated that the income of older couples was 51% of pre-retirement income with single pensioners achieving a rate of 43%.

Since first taking office, the needs of older people have been a priority for this Government. The Government has sought through significant increases in pensions and changes to other schemes to improve the position of older people. Since 1997, we have increased pensions by up to €80.26 per week or 81%. Over the same period the increase in the consumer price index was 30.7%, while average earnings increased by51%. At the same time we have eased qualifying conditions so that more people can now receive contributory pensions. The free schemes have also been made available to all those over 70 years of age regardless of their income or household composition.

The programme for Government contains a commitment to increase the basic State pension to €200 by 2007 and further progress will be made in the 2006-07 period. The maximum rate of contributory old age pension now stands at €179.30. Under the national pensions policy initiative, published by the Pensions Board in 1998, the board proposed a rate of 34% of gross average industrial earnings for contributory pensions based on average earnings for the previous year. On that basis the current rate of pension is equivalent to almost 32%.

A statutory review of pensions coverage and related issues is required to be completed by September 2006. In February I asked the Pensions Board to commence work on a comprehensive review of our overall pensions strategy. Work on the review is ongoing and will include an examination of the appropriateness of the original targets suggested in the national pensions policy initiative for social welfare pensions and the total income of pensioners. I am anxious to ensure that the report is completed in the shortest possible timescale so that I can review the situation and decide what further action is required in this area. At this stage I expect to receive the report of the Pensions Board in September.