A model of pensions for A model of pensions for women in Irelandwomen in Ireland

Presentation to Irish Women Lawyers Association.

Rachel Doyle NWCI Head Outreach, July 2009.

Current Irish System- FactsCurrent Irish System- Facts

Older population stable at 11% of Older population stable at 11% of totaltotal

2/3 of Older people receive State 2/3 of Older people receive State pensionpension

Women half as likely to have pension Women half as likely to have pension as menas men

Total pensions expenditure stable as Total pensions expenditure stable as % of GNP (2.1%)% of GNP (2.1%)

Pensioner poverty now 16% Pensioner poverty now 16%

Reform issues for Irish SystemReform issues for Irish System

IssuesIssues AdequacyAdequacy StructureStructure EquityEquity SustainabilitySustainability IndividualisationIndividualisation GovernanceGovernance

Current RealityCurrent Reality

Low state pensionLow state pension

Voluntary 2nd tierVoluntary 2nd tier

Retain tax reliefsRetain tax reliefs

Looming crisisLooming crisis

Not a central issue Not a central issue

No discussionNo discussion

Principles of Feminist Pension Principles of Feminist Pension ReformReform

Economic autonomy, dEconomic autonomy, direct irect pension pension rights. rights.

Labour Market Equality - addresses Labour Market Equality - addresses cumulative labour market inequality. cumulative labour market inequality.

Facilitating atypical work, - fully Facilitating atypical work, - fully inclusiveinclusive

Ethic of Care Ethic of Care Equal sharing of care obligations. Equal sharing of care obligations. Retrospective pensions justice.Retrospective pensions justice.

Pension principles – continuedPension principles – continued

Adequacy – for a decent quality of Adequacy – for a decent quality of life life

Simplicity, transparency, information Simplicity, transparency, information

Allowing for some provision for Allowing for some provision for income replacementincome replacement

Pension principles – equally Pension principles – equally importantimportant

Enable flexible mobile lifestyles Enable flexible mobile lifestyles consistent with high levels of consistent with high levels of migration migration

Enable diversity and inclusion of Enable diversity and inclusion of family formation family formation

Respect life style choices in Respect life style choices in relation to old agerelation to old age

SustainableSustainable

Model Model

Proposed three tier model Proposed three tier model

The critical decision is the relative The critical decision is the relative importance in the pension system of an importance in the pension system of an adequate first-tier state pension. adequate first-tier state pension.

A second-tier pension should take the form A second-tier pension should take the form of of a state earnings related pensiona state earnings related pension that that builds on the existing, widely accepted builds on the existing, widely accepted social insurance systemsocial insurance system

Third tier –voluntary pensions system with Third tier –voluntary pensions system with very limited tax incentivised savings and very limited tax incentivised savings and development of more equitable development of more equitable progressive savings incentivesprogressive savings incentives

First Tier A Comprehensive First Tier A Comprehensive Guarantee Guarantee

Make adequacy and individual entitlement the Make adequacy and individual entitlement the immediate, core function of first tier pensionsimmediate, core function of first tier pensions

Adequate universal pension for all over 66 Adequate universal pension for all over 66 and resident in Irelandand resident in Ireland

Immediate pension justice and direct rightsImmediate pension justice and direct rights Simple, transparent, equitable, Simple, transparent, equitable,

comprehensive comprehensive Equality and ethic of care Equality and ethic of care Sustainability - switch tax expenditures into Sustainability - switch tax expenditures into

first tier, increase women’s labour market first tier, increase women’s labour market participation, choice of retirement age etc participation, choice of retirement age etc

22ndnd Tier social insurance Tier social insurance contributory pensionscontributory pensions

Ensuring maximum eligibility Ensuring maximum eligibility Ensure benefit calculations advantage Ensure benefit calculations advantage

women (gender impact assessment) women (gender impact assessment) Maximise access by enabling easy re-Maximise access by enabling easy re-

entry after periods of disruption; entry after periods of disruption; • enable relatives assisting, including enable relatives assisting, including

spouses of self-employed and spouses of self-employed and farmers, to be insuredfarmers, to be insured

Transforming homemakers’ disregards Transforming homemakers’ disregards into credits and awarding these into credits and awarding these retrospectively from 1973. retrospectively from 1973.

22ndnd Tier social insurance Tier social insurance contributory pensionscontributory pensions

Introducing gender neutral paid Introducing gender neutral paid parental leave benefit for parents of parental leave benefit for parents of young childrenyoung children

Once-off, ring fenced retrospective Once-off, ring fenced retrospective scheme scheme

Once adequacy in the first tier Once adequacy in the first tier guaranteed introduce an income guaranteed introduce an income replacement function into SIreplacement function into SI

““My long search for security in my My long search for security in my later years has left me frustrated later years has left me frustrated with the social welfare system. I with the social welfare system. I feel unvalued by the state for all feel unvalued by the state for all

the years I’ve given to caring , we the years I’ve given to caring , we were unpaid workers who took were unpaid workers who took care of parents. We saved the care of parents. We saved the state a lot of money” (Mary)state a lot of money” (Mary)

“ “ I am now seventy years of I am now seventy years of age and have received age and have received

nothing from the state even nothing from the state even though I have contributed though I have contributed to society by rearing the to society by rearing the

future generation”. future generation”. (Catherine)(Catherine)

“ “ I am a person in I am a person in my own right and I my own right and I would like to be as would like to be as independent as independent as possible” (Cecilia)possible” (Cecilia)