What is the Social Insurance Fund under Section 9 of the Social Welfare Consolidation Act 2005?

The Social Insurance Fund, originally established under the Social Welfare Act 1952, is Ireland's central fund from which social insurance benefits such as pensions, illness benefit, and jobseeker's benefit are paid. Section 9 sets out its structure, comprising a current account, an investment account, and a special account for emergency advances.

How are the three accounts within the Social Insurance Fund managed?

The current account handles day-to-day income and expenditure and is managed by the Minister for Social Protection. The investment account holds surplus funds invested in approved securities and is managed by the Minister for Finance. The special account serves as a backstop, receiving advances from the Central Fund when other accounts are insufficient.

What happens if the Social Insurance Fund's expenditure exceeds its income in a financial year?

If annual expenditure exceeds income, the shortfall is made good by the State through a payment from moneys provided by the Oireachtas. The calculation of income and expenditure is agreed between the Minister for Social Protection and the Minister for Finance, and payments are made at times determined by the Minister for Finance.

What accountability and audit requirements apply to the Social Insurance Fund?

The Fund's accounts must be prepared in a format directed by the Minister for Finance, examined and certified by the Comptroller and Auditor General, and laid before both Houses of the Oireachtas. The Minister for Finance must also consult with the Minister for Public Expenditure and Reform regarding the performance of functions under this section.

Social Welfare Consolidation Act 2005 section 9

Social insurance fund

Section 9 establishes the structure, management, and funding arrangements for the Social Insurance Fund, which finances social insurance benefits in Ireland.

The Social Insurance Fund comprises three accounts: a current account (managed by the Minister for Social Protection), an investment account (managed by the Minister for Finance), and a special account for emergency advances from the Central Fund.
Surplus money in the current account is transferred to the investment account, which must be invested in approved securities; if the current account runs short, money flows back from the investment account or the special account to cover liabilities.
Any annual shortfall — where the Fund's expenditure exceeds its income in a financial year — is made up by a payment from the Oireachtas (the State), with the calculation of income and expenditure agreed between the Minister and the Minister for Finance.
The Fund's accounts must be prepared in a form directed by the Minister for Finance, audited and certified by the Comptroller and Auditor General, and laid before each House of the Oireachtas.

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