Richard Bruton (Dublin North Central, Fine Gael)

I thank the Minister for his reply. I am sure he has seen reports in the media of the experience of the board of one State company which was considering moving from a defined benefit to a defined contribution scheme. On approaching the Department of Finance to discuss the matter, the board was told that if the idea of moving to defined contributions were to surface ahead of the national pay talks, unions would use the talks process to put that possibility beyond bounds, at least for the public sector. It seems the Department of Finance is adopting a remarkably strange position in this matter.

Will the Minister clarify whether it is the view of his Department that public bodies should migrate towards defined contribution schemes, or is it his view that defined benefits should continue to be the norm? Will he comment also on the remarks reportedly attributed to the Taoiseach expressing concern at the private sector move towards defined contributions? If accurate, these reports suggest that the Taoiseach and the Minister's Department are not on the same page in their approach to pensions. What is his view on future policy in regard to these two competing schemes?

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