Government launches Green Paper on Pensions
Government launches Green Paper on Pensions
An Taoiseach, Bertie Ahern, TD, the Tánaiste and Minister for Finance, Brian Cowen, TD and the Minister for Social and Family Affairs, Martin Cullen, TD today launched the Green Paper on Pensions.
The Green Paper covers the background to the Irish pension system and a broad range of issues related to social welfare, occupational, personal, and public service arrangements. The demographic and sustainability challenges facing Ireland in the
decades ahead are outlined and a number of scenarios and options are discussed. These include measures to address the sustainability challenge, maintaining the status quo, universal provision, increasing social welfare pensions, SSIA-type tax
incentives and soft mandatory and mandatory approaches. Other elements covered include annuities, the role of regulation and issues related to work flexibility in older age.
Speaking at the launch of the document the Taoiseach said: “ Now that we are living fuller, longer and more productive lives, we need to shift our thinking. Let us look at how we can create advantage from demographic trends to enhance the quality of life
of individuals. The pensions issue is a challenge which will be facing us for decades to come and will require a fair and flexible approach.”
The Tánaiste said: “The Green Paper makes it very clear that we face a difficult challenge in ensuring the financial and economic sustainability of our pension system as the task of financing increased spending on pensions falls to a diminishing share of the population ” . He added that: “Difficult options must be discussed if we are to have an open and honest debate on our future pension strategy. It is very important that the scale of this challenge is understood before policy decisions are made in this area.”
Minister Martin Cullen said: “ Pensions is one of the major issues the country must tackle for the future and any decisions we take at this stage will impact on society for decades to come. There are no easy answers. People are living longer in retirement. However as a country we are fortunate that we have time before this change impacts.” Minister Cullen added: “ It is a challenge that I and the Government are determined to meet so that current and future generations will have in place a pensions system that will deliver a secure and fulfilling retirement for all. ”
A public consultation process is planned following today’s publication of the Green Paper. Minister Cullen commented: “ The essential purpose of this Paper is to promote debate and build consensus. Given the importance of the issue, I am anxious to ensure that the consultation process is as inclusive as possible and that people have ample time to study the Green Paper and to formulate their ideas. We need to consider the type of retirement we want and how we might pay for it. I am pleased that we are about to embark on that debate. I have an open mind on how the pensions system should develop in the future and I look forward to hearing the views of all interested parties on how we should proceed. ”
In addition to the Green Paper, the Government also launched the Actuarial Review of the Social Insurance Fund 2005 and the Review of the Irish Annuities Market. Both of these documents provided important information and context that informed the development of the Green Paper.
The Green Paper on Pensions and the other two reports launched today are available on a new website www.pensionsgreenpaper.ie and on the Department of Social and Family Affairs website www.welfare.ie
ENDS