State pensions should make for "a decent life" - APO

Every citizen should receive a state pension that enables them and their dependants to live a decent life, according to the Alliance of Pensioner Organisations.

Expanding on its memorandum 'Protection of Pension Rights', submitted to political parties in March, 2002, the alliance said this principle should also apply to a person who is not entitled to a pension under the contributory scheme, or is only entitled to a reduced pension.

It said the pension should be revised from time to time to maintain its value in real terms and its relativity to earning levels.

The state scheme of social insurance should not permit opting out, and nor should it incorporate provision for private pensions. However, every citizen should be free to supplement the state pension with a private pension.

The alliance also said a board of management should be set up to oversee pensions and to invest a portion of all the annual contributions into a reserve fund to deal with the welfare gap problem which is expected to peak in 2025.