We will pay for raiding Pension Reserve Fund

THERE seems to be a sense that the national Pension Reserve Fund is a wad of “free money” that we can raid at a time of our choosing.

In reality, every time we dip into the Pension Reserve we are literally taking money out of the pocket of those who will retire in five, six or 10 years’ time.

Pension liabilities of EU Member States are part of the Stability and Growth Pact and as a consequence of our totally unrealistic EU/IMF deal, we are now committed to bringing the country back into line with this pact by 2014, therefore any shortfall in pension liabilities will have to be taken into consideration in this context.

In comparison with other European countries the severity of Ireland’s pensions savings gap in monetary terms per individual ranks in the top three.

This indicates the “black hole” of pension provision that Ireland is facing, and any smash and grab of our Pension Reserve Fund — even with the imprimatur of the European Commission — is simply storing up trouble for the future.

Furthermore, in the context of the recent report from the CSO on the contrasting lives of men and women, it is also worth noting that any pension deficit will hit women harder due to the fact that their incomes are approximately 30% lower than men, and they live longer, therefore increasing the probability of a generation of poorer older women.

It may be argued that in the short term we must use the fund, but this is not a cost-free exercise and there will be a price to pay.

Marian Harkin

MEP

European Parliament

Brussels