Joanna Tuffy (Dublin Mid West, Labour)
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Question 103: To ask the Minister for Social and Family Affairs the reason Section 39 of the Pensions (Amendment) Act 2002 has not been fully commenced; when he will do so; and when he will commence the remaining parts of the Act. [32215/07]

Martin Cullen (Waterford, Fianna Fail)
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Section 39 of the Pensions (Amendment) Act 2002 provides for the insertion of a new section 56A into the Pensions Act 1990. Section 56A provides for the consideration of index-linked increases in rates payable in defined benefit pension schemes. It only applies to schemes where the rules do not provide mandatory indexation and does not require that indexation be introduced, only that it be examined. The intention of the provision is that it would encourage trustees to provide indexation of pensions in payment.

As the House is aware, the Green Paper on pensions policy was published on the 17th October and a major consultation process in relation to future pensions policy is now underway. Following the completion of the consultation process, the Government is to respond to the views expressed by publishing a framework for future pensions policy. As part of this process, the situation in relation to section 39 of the 2002 Act will be kept under review, in consultation with the Pensions Board, and section 39 commenced at an appropriate time.

Section 3 of the Pensions (Amendment) Act 2002 provided for the insertion of a new Part 10 into the Pensions Act to establish the framework for the introduction of Personal Retirement Savings Accounts (PRSAs). This amendment has been commenced in full with the exception of section 122. Section 122 provides for the replacement of buy-out bonds with PRSAs. A buy-out bond is a pension bond into which you can transfer your fund if you leave your company pension scheme. Originally, the intention, in line with the National Pensions Policy Initiative, was that new buy-out bonds would cease when PRSAs became available.

However, due to the 15 year tax rule on transfers from occupational pension schemes to PRSAs, buy-out bonds will have to remain, at least in the short to medium term. While there are no immediate plans to commence this section of the Act, I will continue to keep it under active consideration.

Section 43 of this Act provides for new sections, 59D to 59F, to be inserted into the Pensions Act 1990. Sections 59D and E provide additional requirements for disclosure and consultation prior to finalisation of the winding-up of a pension scheme, actuarial certification of funding levels and disclosure to scheme members prior to bulk transfers. Section 59F provides that changes in scheme rules and the exercise of any discretionary power to augment members' benefits may be deemed null and void in certain circumstances. All of these sections require the making of Regulations some of which are currently being drafted. When these Regulations are finalised, the enabling powers will be commenced.

Noel Coonan (Tipperary North, Fine Gael)
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Question 104: To ask the Minister for Social and Family Affairs the position regarding the proposed reforms of treatment of women in the social welfare code as outlined in the Programme for Government; and if he will make a statement on the matter. [32292/07]

P J Sheehan (Cork South West, Fine Gael)
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Question 143: To ask the Minister for Social and Family Affairs the position regarding the commitment given in the Programme for Government to address the inequalities for women in the social welfare system; and if he will make a statement on the matter. [32289/07]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 104 and 143 together.

There has been a range of reforms to the social welfare system over recent decades which are making it easier for people, and women in particular, to qualify for contributory pensions.

Social insurance coverage has been extended to include new categories of employment such as part-time workers, qualifying conditions for pensions have been eased and the Homemakers scheme introduced to limit the impact periods spent out of the workforce on caring duties can have on pension entitlements. The effect of these reforms, combined with increased workforce participation, will be to ensure that, in future, most people will qualify for a contributory pension in their own right.

The Government has also taken action to improve the position of those who do not qualify for a pension in their own right, but are supported as qualified adults on the pension of their spouse or partner. The Agreed Programme for Government contains a commitment to increase the rate of the qualified adult payment to the level of the State Pension (non contributory) and, in the case of pensions claimed since the September of this year, the payment will issue direct to the spouse or partner. Voluntary arrangements for separate payments, which have been available since 2002, remain open to existing pension recipients.

There are, of course, many older women who, for various reasons, cannot benefit from the many changes outlined. The position of these women, together with others not covered by the social welfare pensions system, and the implications of making provision for them, is discussed in the Green Paper on pensions which I published on the 17th October. Overall it is estimated that there are some 47,000 people, including 30,000 women, who are not receiving a pension payment in their own right or as a qualified adult on the pension of their spouse or partner. In the main these are former public servants, self-employed and their spouses. Decisions in this area will be made in the context of the framework for future pensions policy which will be developed when the consultation process on the Green Paper is completed.

The Department is also carrying out a technical review of the entire social welfare code to examine its compatibility with the Equal Status Act 2000 (as amended). This will identify any instances of direct or indirect discrimination, on any of the nine grounds under the Act, including: gender, sexual orientation, marital status and family status that are not justified by a legitimate social policy objective or where the means of achieving that objective are either unnecessary or inappropriate.

The findings of this review and the conclusions in the social welfare pensions area arising from the publication of the Green Paper, will contribute to informed planning and policy making to ensure that the social welfare system, and the pensions system in general, reflects the needs and expectations of all citizens and is equitable in meeting those needs.