John Curran (Dublin Mid West, Fianna Fail)
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1875. To ask the Minister for Employment Affairs and Social Protection her plans to establish a mandatory pension scheme with auto-enrolment; the consultations that have taken place to date on such a scheme; when a scheme may become operational; and if she will make a statement on the matter. [38202/17]

Regina Doherty (Meath East, Fine Gael)
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The rate of supplementary pension coverage in Ireland is 47% of the working population and this reduces to 35% when the private sector is considered in isolation. Whilst the State pension provides a reasonable basic level of income and guards against poverty in retirement, if measures are not taken to address this low rate of supplementary coverage, many future retirees will experience unwanted reductions in living standards when they reach retirement.

I intend to make pension reform a priority in my term as Minister for Employment Affairs and Social Protection. To this end, I can confirm my intention to publish and commence in the coming months the implementation of a number of measures for the reform of pensions. In addition to a range of other long term reform measures, these measures will detail proposals and timelines for a transition from the current and purely voluntary supplementary pension system to one which will, subject to certain parameters, automatically enrol 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 It will increase the wellbeing, financial security and independence of future retirees.

In order to facilitate input from those with an interest in this area and to utilise the range of existing expertise, approximately 35 organisations and representative bodies were previously invited to outline their views on the potential parameters of an auto enrolment system. Officials in my Department subsequently met with many of these sectoral interests to discuss the submissions received and allow further articulation of views. Additionally, a number of consumer focus groups have been held to establish attitudes towards mandatory and auto enrolment retirement savings systems.

In addition to the above, consultations have also taken place with international/Irish subject matter experts to inform the deliberative process. This includes experts from Australia, New Zealand, Canada, the United Kingdom, the United States and the OECD.

A review of international auto enrolment retirement systems has confirmed that success is dependent on well tested design and securing member trust. To this end, further detailed evidence building and consultation will be undertaken to inform fundamental choices which are required regarding the preferred operational structure and organisational governance for a new system as well as design elements such contribution levels, financial incentives and target membership. Correctly positioning/designing each of these will be critical to the success of any system.

I hope this clarifies the matter for the Deputy.