Joan Burton (Dublin West, Labour)
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Question 98: To ask the Minister for Social and Family Affairs if he has satisfied himself that there are adequate resources in the Social Insurance Fund to fund the proposed increase in pensions to at least €300 per week; and if he will make a statement on the matter. [15187/07]

Séamus Brennan (Dublin South, Fianna Fail)
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It is estimated that the cost of applying an increase to €300 to contributory pensions, which are financed through the Social Insurance Fund, would be €1,495 million. Increasing the value of all social welfare pensions to €300 is estimated to cost €2,019 million in a full year, including the cost of increasing payments to qualified adults to maintain their current proportionate relationship to the personal weekly rates of payment. References to increasing welfare pensions to €300 per week indicated that any such increase would be achieved over a number of years and not in a single year.

Traditionally social insurance spending has been funded on a tripartite basis through contributions from employers and employees and the exchequer, which, under legislation, is the residual financier of the Fund where annual shortfalls arise. However, no exchequer contribution to the SIF has been required since 1996 as the Fund has, since then, been in surplus each year on foot of contributions from employers and workers.

In 2006 the annual surplus was some €670m and, based on provisional returns available at present, it is expected to be in excess of €600m at the end of 2007. The accumulated surplus at the end of 2006 was almost €3,100m and is projected to be €3,700m at end of 2007. Therefore, at present the SIF has sufficient resources to provide for these increases.

The Social Welfare (Consolidation) Act, 2005, requires that an actuarial review of the longer-term financial condition of the social insurance fund be undertaken at five-year intervals. The first actuarial review was published in October, 2002, and reflected the position of the Social Insurance Fund at the end of 2000. The second actuarial review will be considered by Government shortly prior to submission to the Oireachtas and publication.