Publication of Actuarial Review demonstrates folly of Fianna Fáil proposals to cut PRSI rates
Sinn Féin Economic Affairs spokesperson Arthur Morgan TD, commenting on the publication of the latest Actuarial Review of the Social Insurance Fund, said that the findings of the Review demonstrated that the proposals put forward by Fianna Fail in advance of the election to cut PRSI contribution rates were ill thought out and flawed.
Deputy Morgan said:
“The main conclusion of the latest Actuarial review of the Social Insurance Fund is that while total income to the Fund is projected to equal or exceed benefit outgoings up to 2010 thereafter the Fund’s net cash flow position is projected to decline rapidly. The Funds surplus is projected to be exhausted by 2016 on the basis of the central economic assumptions and benefits indexed in line with earnings.
“In advance of the election Fianna Fail had put forward proposals to cut employee PRSI from 4 to 2 per cent and to cut PRSI for the self-employed from 3 to 2 per cent. Sinn Féin attempted to highlight the devastating impact the implementation of such proposals would have for the delivery of social protections. We pointed out that Fianna Fail in an attempt to woo voters were making these proposals without any consideration to whether the social insurance fund (into which PRSI contributions are paid) was sufficient to meet current and future demands.
“Sinn Féin highlighted the fact that there were already serious concerns about the adequacy of the Social Insurance Fund based on the findings of the first actuarial review. The latest review has confirmed these concerns and has found that in fact contribution rates would have to increase substantially if the Fund’s income is to be adequate to support the benefits being paid from the fund going forward. How much worse would this scenario be if the Fianna Fail proposals to cut PRSI contributions were implemented?
“Sinn Féin believes that there must be a focus on maintaining an adequate social insurance fund so that the state is in a position to improve social protections, raise social welfare rates, improve maternity benefit (including length of leave), introduce payment in respect of parental leave, increase redundancy entitlements and introduce a reformed state pension.” ENDS