Kathleen Lynch (Cork North Central, Labour)
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Question 32: To ask the Minister for Social and Family Affairs the number of persons who have taken out PRSAs at the latest date for which figures are available; the overall proportion of the eligible workforce this represents; his plans to review the scheme in view of the low take up rate to date in 2005; and if he will make a statement on the matter. [37210/05]

Séamus Brennan (Dublin South, Fianna Fail)
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It is Government policy to encourage people to participate in supplementary pension arrangements so that they can, when they retire, maintain their pre-retirement standard of living. To this end, a range of measures has 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 indicate 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 people do not have a supplementary pension to increase their incomes in 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 supplementary coverage.

There is no doubt that progress in relation to 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. The most recent figures from the Pensions Board show that 59,251 PRSAs had been taken out up to the end of September 2005. However, overall pensions coverage is increasing at a lower rate than is desirable. The reasons for this are many and varied and include, for instance, issues of affordability and the fact that many people consider they are too young to consider pension provision.

As the Deputy is aware, in February of this year, because of slow progress on our pensions targets, I asked the Pensions Board to conduct a review of our overall pensions strategy. I received its report on 7 November.

The review encompasses an examination of the main strategic recommendations contained in the national pensions policy initiative including those relating to the adequacy of income in retirement, coverage targets, levels of social welfare pensions, sustainability of State pensions including public sector pensions, and the tax support for supplementary pensions. The review also examines the question of alternative ways of addressing pensions adequacy and coverage issues.

The review has been submitted to the Cabinet for consideration. The report is a large and complex document that will need to be fully studied by my colleagues. When this has been finalised, arrangements for publicising the report will be decided on. I hope the report will engender a national debate on the future direction of our pensions system.