Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 170: To ask the Minister for Social Protection if she will conduct and publish a cost-benefit analysis of using the PRSI system not only to collect the auto-enrolment pension contributions that are proposed by the national pensions framework but also to manage that money and make payments rather than handing those responsibilities over to the private pension industry considering the inefficiencies that are typical of it. [13330/11]

Joan Burton (Dublin West, Labour)
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Increasing pensions coverage, particular amongst the lower paid and those with gaps in their employment, is a priority for the Government. The introduction of an auto-enrolment system is one of the best ways in which we can do this. An inter-departmental/agency group, chaired by the Department of Social Protection is developing the legislative, regulatory and administrative infrastructure required to introduce a number of pension reforms in the National Pensions Framework, including auto-enrolment.

It is envisaged that contributions for an auto-enrolment system will be collected through the PRSI system and the Government will decide how those investment funds will be selected and managed. It is expected that a competitive process will be run by the State which will also ensure that charges are kept to a minimum. It is intended that the auto-enrolment scheme will be introduced in 2014 but only if it would be prudent given the economic conditions prevailing at that time.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 171: To ask the Minister for Social Protection the steps she is taking to identify the level and scale of costs in the private pensions industry. [13331/11]

Joan Burton (Dublin West, Labour)
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The overall objective of the pension system is to provide an adequate basic standard of living through direct state supports and to encourage people to make supplementary pension provision for themselves so that they can have an adequate income in retirement. A system which delivers on this objective must be sustainable and affordable. The charges associated with the provision of private pensions are an important element in achieving these objectives in an effective and efficient manner.

I have asked the Implementation Group for the National Pensions Framework to bring forward their work on examining the options to bring greater simplification and transparency to the issue of pension charges. In the initial phase the group will endeavour to collect as much information as possible in relation to the level of costs and charges that currently apply. This will assist future decisions in this area.