Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

The failure of a large number of defined-benefit pension schemes, involving an estimated 30,000 workers, to submit recovery plans to the regulator before 30 June confirms, if we needed it, the crisis facing the pensions of thousands of workers across the country and illustrates the absolute need for the Government to intervene in this crisis. Many schemes will close over the coming months. On Monday, for the first time ever, we witnessed IBEC, ICTU, the Irish Association of Pension Funds and the Society of Actuaries in Ireland collectively calling on the Government, particularly the Minister for Social Protection, to take immediate action to avert the crisis. They made the telling point that Government inaction is making the matter much worse.

Failure to submit a recovery plan will force many trustees and sponsoring employers to make choices either to continue with schemes, to wind them up if they are in deficit or to realign their priorities. The Government said it would legislate for this. Just to make this concrete, we are faced with a scenario in which many retired executives will continue to receive pensions of up to €150,000 but a worker at 64 years of age in such a scheme may end up with nothing at all when he retires. Recently, people have lost up to 70% of their expected entitlements in some schemes. This is simply unacceptable.

The alliance that came together on Monday stated that over the coming months many schemes will unravel in an inequitable and unjustified way. The programme for Government promised to amend the Pensions Act 1990 to deal with this particular crisis. The recent Social Welfare and Pensions (Miscellaneous Provisions) Bill failed to do so. When does the Government intend to deal with this particular crisis and introduce the legislation it promised in the programme for the Government?

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