Tommy Broughan (Dublin Bay North, Independent)
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85. To ask the Minister for Social Protection when he proposes to publish his plans and costings for a universal pension for all persons; and if he will make a statement on the matter. [25715/17]

Leo Varadkar (Dublin West, Fine Gael)
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I have made pension reform a priority for my term as Minister for Social Protection. To this end I can confirm my intention to publish and start implementing an Action Plan for the reform of pensions over the coming months.

The rate of supplementary pension coverage in Ireland is estimated at 35% of the working population when the private sector is considered in isolation. If measures are not taken to address this low rate of coverage, many future retirees will experience unwanted reductions in their living standards when they reach retirement.

To deal with this situation, as well as a range of other reform measures, this Action Plan will set out proposals for a transition from the current and purely voluntary supplementary pension system to one which will automatically enrol eligible employees into a quality assured retirement savings system. This reform, where the saver will maintain the freedom of choice to opt-out, will encourage long term saving and asset accumulation amongst those who may otherwise suffer a reduction in living standards at retirement and will increase the wellbeing, financial security, and independence of future retirees.

Following the publication of this Action Plan and in order to guide future Government decisions, the detailed evidence building and consultation required to deliver automatic enrolment will be undertaken over an initial project planning phase. This work is needed to inform fundamental choices regarding the preferred operational structure and organisational governance for the new system as well as design elements such as the required contributions, financial incentives and target membership. Correctly positioning/designing each of these will be critical to the success of any system. Decisions on each of these matters will be required to determine costings for the system.

I hope this clarifies the matter for the Deputy.