A strong State pension scheme would help older people age with security and dignity, the Greens said today.
Launching a policy document on the issue, the Greens also called for a second tier 'opt out' scheme, regulatory reforms and employment measures to give maximum choice for workers reaching retirement age.
Yesterday's report from the Pensions Board yesterday concluded that a combination of an increased State pension and private savings accounts would be the most practical way of addressing the current crisis where only half of the two million-strong workforce have pensions.
However the proposals were dismissed by the Department of Finance on the grounds of cost to the Exchequer. Employers are also opposed to any mandatory pension system which they see as adding to the cost of labour.
Introducing the document, A Path to Ageing with Dignity, Security and Quality of Life, the Greens' finance spokesperson Dan Boyle said in Dublin today that the current pension system was inequitable, inefficient and unsustainable.
"As our population ages, we are spending billions on pensions yet Government policy has allowed sharp inequality to develop, leaving some older people in poverty. Pensions policy has serious implications for social justice and we are serious about reforming how pensions are managed," he said.
"The existing system of tax relief is costly and ineffective and does not provide adequate incentives to workers to provide for their future — particularly those on lower incomes.
"I believe that a system of tapered, matching contributions would provide a greater incentive to invest in pension provision and would allow for fairer outcomes for those on low and middle incomes."
"I believe we should base our system around a strong state pension. This is consistent with the Pensions Board's recent report. It is simple, gender-neutral and provides for all, including the most vulnerable in society.
"In addition, a second tier 'opt-out' system, which would ensure that all workers are covered while giving them the option to invest in other schemes instead, would help to ensure broad coverage, making many more individuals' retirements secure."
Employment spokesman Eamon Ryan said the party favoured giving maximum choice to people who are reaching retirement age. "It is important that the Government is not complicit in undermining employees' rights in the rush to avoid a pensions crisis," he added.
The Greens said they would like to see the Government facilitating employers to employ and retain employees over the age of 65. They also repeated their call for legislation to establish a legal right to flexible working practices.
Mr Boyle added: "The future of pension provision is posing challenges for policy-makers. I believe that the policies outlined in this document show a way forward which allows for fairness and value-for-money."