Dr. Orlaigh Quinn:

I will make a couple of comments and answer the specific questions that have been asked. I would strongly argue that efforts have been made in this area. Members of the Oireachtas will know that pensions legislation has been introduced every year since 2008, all of which has tried to protect defined benefit schemes.

A specific question was asked about the acceleration of wind-up and whether it was happening. It is happening but DB schemes have been winding up for the last 20 years. Senator Moloney said this is not a new crisis. The defined benefits sector really went into crisis in 2001 with the dot.com crash. It has not recovered since then for a number of reasons. As a model, it is not there to take account of longevity. I cited the figures earlier, so a huge cost has not been factored in. Investment losses have been colossal and far in excess of any other OECD country, so Ireland is an outlier there. For a number of reasons, including those two in particular, defined benefit schemes have been closing. However, they have certainly been closing for 20 years or more. I agree with Deputy Ryan that they have accelerated in recent years.

Some 820 schemes are currently subject to the funding standard, so they are regulated by the Pensions Board, but 190 are not. Those are the correct data on that.

It was said that the regulatory structure is too tough.

If it is too tough why are the schemes underfunded? When the funding standard was suspended, there was no evidence of schemes taking action to resolve their problems. Since the funding standard has come back into play, we have seen a huge number of schemes working with the Pensions Board and, in the main, putting funding plans in place to generate their schemes.

Deputy Aengus Ó Snodaigh asked about a globalisation fund and the equivalent on the pensions side. At EU level, all member states have very different pension schemes. Only three have defined benefit schemes. They are Ireland, the United Kingdom and Holland. Most member states operate either on the basis of state-funded or defined-contribution schemes. Decisions on pensions are taken at member state level and a suggestion such as the one made would have to be subject to discussion and debate. I am not sure, given that pension schemes are so different, that such discussions would be high on the agenda.

Deputy Brendan Ryan asked about the White Paper and what is new in it. There is probably nothing new as such. The issues are ones with which we are very familiar and have been trying to grapple. The paper is very much focused on the aging population. On some issues, Ireland is ahead as we do not have differences between men and women in our State pension whereas other states would have significant gaps to make up. Most countries are grappling with the same issues which include sustainability, adequacy and longer working years. I cannot highlight anything that is really new and of which we would not have been aware previously.

Deputy Ryan asked specifically about the pensions levy. It is a matter for the Minister for Finance who introduced the 0.6% levy in 2010 on the basis that it would terminate in 2014. He announced a 0.15% levy. All of that is connected with the jobs initiative and addressing future or pre-existing State liabilities. The Minister has said the levy will apply in 2014 and 2015. I cannot comment further. It is the Minister's commitment.