LESS than half of all workers are in occupational pension schemes, the National Economic and Social Forum has been told. Among women, part time workers and those in small firms, the figure is much smaller, according to Ms Anne Maher, chief executive of the Irish Pensions Board.
The forum is preparing an Opinion for consideration by the Government on pension policy in the context of the National Pensions Policy Initiative introduced jointly by the Pensions Board and the Department of Social Welfare last February. It discussed the matter at a plenary meeting yesterday.
A consultation document has been published by the Department and the board and responses sought. These will be discussed at a national pensions conference in July. The pensions board will present a report to the Minister for Social Welfare at the end of the autumn.
The initiative has identified four sources or pillars" of retirement income provision. These are the two State pension schemes (contributory and noncontributory), occupational pensions, accumulated wealth or assets and continued earnings by retired people.
Ms Maher said changes in work practices had implications for pension coverage. Already less than 10 per cent of part time workers were covered, and the proportion of part time workers was growing in the workforce. According to the last Labour Force Survey, 72 per cent of the 152,400 part time workers were female, and women were less likely to have cover than men.
Small firms were also less likely to have occupational pensions. The increasing trend was for companies to reduce their work forces and out source services, thereby further reducing the numbers entitled to pensions.
"If we do not take some action in relation to our national pension system we could therefore see the level of coverage continue to decline," Ms Maher said. In particular, part-time workers should have pension rights.
She asked whether the State should be more proactive in future, and whether it should have a mandatory approach to private pension provision.
Overall, she said, there were six main alternatives to the present system improvements in private pension arrangements improvements in the State pension scheme a state earnings related scheme mandatory occupational pension cover industry wide pension schemes and personal retirement accounts.
Father Sean Healy of the Conference of Religious in Ireland said there should be strong support for the expansion of the role of State pensions in the longer term.
Mr Robin Webster of Age Action Ireland said there was a certain bias towards the private sector as against public pension provision.
Mr Mike Allen of the Irish National Organisation of the Unemployed said vast amounts of public funds had been put into persuading people to take early retirement. There was no way to solve the problems of those excluded from the workforce except by enhancing State pension provision.