Willie O'Dea (Limerick City, Fianna Fail)
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1205. To ask the Minister for Social Protection the actions she will take following the Citizens Assembly recommendations regarding the need for a mandatory pension scheme; and if she will make a statement on the matter. [34303/17]

Regina Doherty (Meath East, Fine Gael)
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The rate of supplementary pension coverage in Ireland is estimated at just 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. Therefore, I both welcome and support the outcome of the Citizen’s Assembly deliberations regarding retirement income which saw 87% of eligible voters agreeing that the Government should introduce some form of mandatory pension scheme to supplement the State pension.

To this end, I have previously confirmed that it is my intention to publish and commence the implementation of an Action Plan for the reform of pensions over the coming months. 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, it is intended that 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.

Initial consultations have taken place with Irish sectorial interests and international experts in this field. Whilst there is also much to learn by looking at the strengths and weaknesses apparent in aspects of other countries’ pension systems, any solution must be tailored to fit the Irish situation. Therefore, as work progresses, I will ensure that extensive efforts are made to build consensus across political, business and civil society lines and to consider the manner in which such a system would be best delivered.

I hope this clarifies the matter for the Deputy.