Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 323: To ask the Minister for Social and Family Affairs the estimated current unfunded liability of future social welfare pensions; and if she will make a statement on the matter. [19619/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Traditionally, social insurance spending has been funded on a tripartite basis - with contributions coming from the Exchequer, employers and employees. Legally, the Exchequer is the residual financier of the Social Insurance Fund and Exchequer contributions were the norm for over forty years - for example, in 1967, the State contribution was 38% of SIF expenditure; and almost 29% in 1985. As the fund does not operate on a future funded basis, it does not acquire liabilities in respect of scheme funding, including pensions.

The Actuarial Review of the Social Insurance Fund, 2005, which covered the period from 2006 to 2061, did highlight that progressive action is required if future costs, including pensions, are to be met. This will involve finding an appropriate balance between the three strands of the tripartite funding system. However, despite the current economic situation, Ireland is better placed than many EU States to meet this challenge. Approaches to such matters are for the Government to consider in a budgetary context.