Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

I am afraid not all of us fall for the PR advice the Deputy has been given to forget the past and just engage in criticism. This is a very important issue. It is correct that it affects a number of people and there are obvious difficulties in this area. In total, 212 of the 933 defined benefit schemes currently subject to the funding standard were due to submit a funding proposal by 30 June and did not do so. A number have been in contact with the Pensions Board with a view to submitting proposals very shortly. Immediately after the 30 June deadline, the Pensions Board initiated contact with schemes that had not submitted plans to ascertain their particular circumstances.

I want to emphasise the importance of trustees arranging for an actuary to carry out a valuation of individual schemes' liabilities and assets at regular intervals. The effective date of actuarial valuations must be not later than three years after the previous effective date. If the actuary certifies that the scheme has insufficient assets to satisfy the funding standard, the trustees must ensure that a funding proposal is forwarded to the Pensions Board with the actuarial funding certificate. The funding proposal must be designed to ensure the scheme could reasonably be expected to satisfy the funding standard at the effective date of the next actuarial funding certificate. The trustees should instruct the actuary to bring forward proposals for the range of measures that could reasonably be expected to meet such requirements. These could include, first, an increase in the level of contributions to be paid by the employer and-or the scheme members, second, a reduction in the benefits which would be payable to each respective member, third, changes to the investment strategy in regard to the scheme's assets, or, fourth, a combination of any of the measures I have just set out. Specific guidelines under the Pension Acts must be followed if a reduction in the accrued benefits of members is proposed.

The Pensions Board has a specific statutory remit in this area. When it has followed up on these matters, it will be reporting to the Minister, the Minister will be reporting to Cabinet and Cabinet will consider what steps Government should take. However, to suggest the Government has done nothing so far is unfair to the Minister for Social Protection. It is also untrue, and I detailed some of the action taken in my initial comments. Let no one pretend this is an easy problem to resolve. Let us have a bit of honesty in this House. Deputy O'Dea and others in Fianna Fáil should stop washing their hands of their responsibility as individuals for the problems this Government is now seeking to address.

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