Kathleen Lynch (Cork North Central, Labour)
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Question 139: To ask the Minister for Social and Family Affairs when he will publish the second actuarial review of the social insurance fund, provided for under the Social Welfare Consolidation Act 2005; the main findings of the review; when the review will be laid before Dáil Éireann; and if he will make a statement on the matter. [20717/07]

Martin Cullen (Waterford, Fianna Fail)
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The second Actuarial Review of the Social Insurance Fund, which is required under Section 10 of the Social Welfare (Consolidation) Act, 2005, is being finalised. This is in accordance with the requirement that such reviews be carried-out at five-yearly intervals and be completed not later than five years after the date of completion of the previous review. The first Actuarial Review was published in 2002, and reflected the position of the Fund at the end of 2000.

The second Actuarial Review was completed by Mercer Human Resources Consulting in June, 2007. It was received by Government in July, 2007, and is currently under consideration. Under legislation it must be laid before the Oireachtas by early December, 2007; however it is anticipated that this will happen well in advance of this date.

The Social Insurance Fund provides insured contributors with pension benefits upon retirement — as a result of old age or incapacity — as well as a range of shorter term social welfare benefits. The Fund covers nearly all employees and the self-employed in Ireland — although some contributors are only covered for a limited range of benefits.

The current review was carried out by independent consultants who examined the financial condition and sustainability of the Fund at the end of 2005 — when SIF expenditure was €5.6 billion, income to the Fund was €6.1 billion and some 2.8 million persons were contributing into it.

In line with the Terms of Reference provided to the consultants the review covers the period from 2006 to 2061 and investigates the impact of increasing benefit rates and contribution limits in line with prices and with earnings.

In addition, the effects of adjusting the retirement age are explored, as are the potential financial impact on the social insurance system of a number of possible future developments. The review does not provide recommendations for policy action but rather attempts to illustrate likely trends over the period to 2061. The review was overseen by a steering committee comprised of officials from my own Department along with others from the Departments of Finance and Enterprise, Trade and Employment. Economic assumptions relating to the period of the review were agreed between the steering committee and the consultants — who also engaged an independent economist to assist in this process. Migration projections, based on the projections of the Central Statistics Office, were also developed in a similar fashion.

It is anticipated that the review will play an important role in the ongoing consideration of social insurance contribution rates, payments and possible future Exchequer subventions to the Fund.