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

Perhaps the Tánaiste can tell us why the amendment or change did not appear in the original legislation and has only appeared on Committee Stage. It seems to be an important amendment.

This is an amendment to private pension provision. I tabled a number of amendments on Committee Stage in regard to private pension provision, such as one to provide for an appeal against the decision of trustees and that no defined benefit pension scheme can close unless it is 90% funded. These amendments were ruled out of order as being irrelevant to the legislation. It seems beyond comprehension that this amendment can be relevant to the Social Welfare Bill and how those amendments are not, which were ruled out again today. The Tánaiste will say she does not make these decisions. Is it not peculiar that when we propose amendments to enable us to discuss the deferred pensioners of the Irish Airlines Superannuation Scheme, IASS, they are ruled out of order on the basis of being irrelevant, while something that changes private pension provision is ruled in because the Tánaiste wants to get it through today?

The Minister referred to the Robins case and Article 8. The decision was that if the provision is not at least 49%, it contravenes the relevant European directive. This legislation provides for 50%, which is the bare minimum. The Tánaiste mentioned a number of minor aspects relating to defined benefit pension schemes and concedes that the number of defined benefit schemes has diminished dramatically from 2,500 some years ago to 933 at the latest count. Has the Tánaiste considered substantial changes to the defined benefit pension scheme? All existing schemes are closed to new members. The demography of the country ensures that in 20 or 25 years we will not be able to maintain the State pension system at its present value in relation to the value of money. We should be doing everything possible to encourage people to provide for themselves. One way in which they could do so with a certain level of security is through defined benefit pension schemes, if we can resurrect them and reverse the trend. The Tánaiste will be aware that one of the major problems with defined benefit pension schemes is the method by which liabilities are calculated. It is artificial and gives a distorted view of the actual liabilities of the defined benefit pension scheme. Does the Tánaiste have proposals in that regard?

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