Michael Healy-Rae (Kerry, Independent)
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719. To ask the Minister for Social Protection his views on a matter (details supplied) regarding public and private sector pensions; and if he will make a statement on the matter. [25201/16]

Leo Varadkar (Dublin West, Fine Gael)
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Defined Benefit (DB) occupational pension schemes typically commit to paying the beneficiary a certain percentage of their final income in retirement on a pro rata basis factoring in their overall years of service in the relevant employment. Broadly speaking, data from the Pensions Authority indicates that approximately 340,000 public sector workers and 125,000 private sector workers are currently members of DB schemes as at end 2015. The payment to the pensioner from a DB scheme is generally integrated with, or inclusive of, the State pension which is currently approximately €12,000 per annum.

Defined Contribution (DC) pension schemes on the other hand, which are most prevalent in the private sector, are not integrated with, or inclusive of, the State pension and any payment from such schemes would be additional to any State pension entitlement. In such schemes, the employee’s and employer’s contributions are invested and the total proceeds, together with any investment growth which may have accrued, can then be drawn down at retirement. 2015 end data from the Pensions Authority indicate 281,629 active members of DC schemes. At present, the decisions as to whether to save in to a pension, and the rate of contributions to that pension, are voluntary and at the discretion of the employee and employers. Typically speaking, the combined employer and employee contributions made to DC pensions are less than those made to DB pensions and where this is the case it would result in a more modest outcome for the member.

I hope this clarifies the matter for the Deputy.