Joan Burton (Dublin West, Labour)
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Question 65: To ask the Tánaiste and Minister for Finance the transfers to the National Pensions Reserve Fund for the years 2005, 2006, 2007 and projected for 2008; the estimate of the level of the NPRF at end 2008 and at end 2025; the estimate of the outstanding pension liability to the Exchequer, including public service, State contributory and State non-contributory pensions, at end 2008 and at end 2025 assuming a historically average return on investment; if he is confident that current allocations to the NPRF are sufficient; the proportion of the Exchequer's pension liability the NPRF is expected to cover from 2025 onwards; and if he will make a statement on the matter. [15628/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The National Pensions Reserve Fund (NPRF) was established on 2 April 2001 with the objective of meeting as much as possible of the cost to the Exchequer of Social Welfare pensions and Public Service pensions to be paid from the year 2025 until at least 2055. For this purpose, the National Pensions Reserve Fund Act 2000 provides that 1% of GNP is to be paid from the Exchequer into the Fund each year. The transfers to the NPRF from the Exchequer for the years 2005 to 2007 were as follows:

2005 — €1,320.250 million

2006 — €1,446.500 million

2007 — €1,615.500 million

The 2008 Budget provision is €1,690 million.

The estimated market value of the fund on 26 December 2007 was €21.3 billion. The National Pensions Reserve Fund Commission publishes fund value and performance figures on a quarterly basis. I understand that an updated 2007 outturn and outturn figures to the end of March 2008 will be published shortly. The full accounts of the Fund are published in the annual reports of the National Pensions Reserve Fund Commission. The reports are available on the Commission's website www.nprf.ie. The liability of the Exchequer for public pensions is normally set out in terms of a percentage of GDP. The latest projections are for public pension expenditure to increase from around 5% of GDP in 2007 to 7.6% in 2025. These projections cover the cost of both Social Welfare and Public Service pensions. The contribution that the NPRF will make towards these costs after 2025 will depend on the precise drawdown pattern adopted.

I might add that the National Pensions Reserve Fund Act 2000 provides that the National Pensions Reserve Fund Commission shall commission, from time to time, assessments of the projected profile of Exchequer outlays on Social Welfare and Public Service pensions, after consultation with the relevant Ministers.