The Government will today launch an options paper on the future of pensions provision in Ireland which will examine the possibility of introducing compulsory pensions for workers.
The Green Paper on pensions, originally promised by the Government in March of this year, will offer options for the reform of both State and supplementary pensions to ensure the adequacy of pension incomes over the coming years.
The paper will outline the challenges facing the pensions system and set out the latest projections for Ireland's population change over the coming decades, according to sources familiar with the publication.
For example, while we now have four people at work for every person aged 65 and over, this figure is projected to drop to close to two people in 20 years' time.
A consultation process aimed at building consensus on pension reforms is also due to be announced today. It will invite contributions from members of the public and interest groups over the coming months.
The paper will also include a focus on particular groups such as those on low incomes and women.
At present the Government is spending almost €3 billion on the main social welfare pension schemes, while the amount of tax relief granted on pension contributions is of a similar level.
Despite this level of expenditure, around half the country's workforce of two million do not have any personal pensions.
The Green Paper will be launched by Taoiseach Bertie Ahern, Minister for Finance Brian Cowen and Minister for Social and Family Affairs Martin Cullen.
Sources familiar with the plans say the purpose of the launch will not be to recommend any particular course of action. Instead it will aim to set out the implications of various courses of action on a social and economic level.
In the area of supplementary pensions, the paper will examine the shift from defined benefit to defined contribution provision, the role of regulation in supplementary pension provision, and the kind of incentives that might increase pension saving.
It will also consider all aspects of the system, including current retirement ages and measures to encourage, facilitate and offer choices to remain part of the workforce for a longer period if that is what people want.
