Willie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

Despite the changes the Minister has outlined, which are welcome as far as they go, the problem remains that at least four out of every five defined benefit pension schemes are technically insolvent and a number are in imminent danger of closing down. I do not understand why he stated "The existence of the standard is not the central issue in whether a scheme is properly funded because the responsibility rests with the employer and trustees for ensuring that a scheme is properly funded and managed." Surely the ability of an employer or trustee to afford to fund a scheme in these difficult times depends on the funding standards he or she is required to meet.

Does the Minister accept that independent economic experts have criticised the sovereign annuity system because of the level of risk and for other reasons? Does he agree that the results of the Irish Life survey show that approximately half of those who are currently contributing to defined benefit pension schemes would either cease their contributions or sharply reduce them if the tax regime is changed?

Can the Minister give us any assurance in that regard, in view of the fact this has been mentioned as a potential target in the forthcoming budget?

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