Clare Daly (Dublin Fingal, Independent) | Oireachtas source

Is the Tánaiste aware there is a serious and developing crisis in our pensions industry? Is she aware of the catastrophic situation where 600,000 Irish citizens with defined benefit pension schemes are facing virtual pauperisation in their retirement years, despite a lifetime of making pension contributions? Already six out of ten defined benefit schemes have shut down under this Government's watch. Now we have the ignominy of the Melbourne Mercer Global Pensions Index putting Ireland at the bottom of the grading list and ranking it the worst for sustainability of its pension system.

If the Government is aware of the crisis, it has a funny way of showing it. Not only has it done nothing to address this issue, what it has actually done has made the situation worse. Last week, Independent News and Media, INM, unilaterally closed its defined benefit scheme on the back of a €23 million shortfall, despite the fact that this was the company that got a €140 million bailout from the taxpayer. There was no discussion and no alternative provided. It was simply gone. It is the latest solvent employer to shut down a pension scheme because it does not want to foot the bill. There is nothing coming out of this House to put a stop to this type of behaviour.

Earlier in the year, we had the appalling example of the Central Remedial Clinic, CRC, unilaterally shutting down its scheme on foot of a €2 million deficit, a tiny amount when lined up against its assets. To add insult to injury, €2 million is coincidentally the same amount that will be paid from these workers' pension pot to Mercers and all the other advisers involved in that scheme. This is because the Government put wind-up costs higher than members' benefits.

The same professional experts, who play all sides of the house, advising the trustees and acting as actuaries will now get money from a wind-up and bringing people into a new defined contribution, DC, scheme and money from administering those schemes. One could not make this up.

The Irish airline superannuation scheme, IASS, also has the same advisers. They set up a very peculiar and unique funding arrangement. I do not know if the Tánaiste knows but a new bombshell trustee report has emerged on the IASS. After years of all the so-called professional advice and a year in operation, this scheme is now in trouble. Hidden in his report, the actuary stated he is no longer confident the scheme will meet the funding standard. Normally, he stated in the report, that should be brought to the attention of the Pensions Authority which should be required to intervene and take action. No action is being taken in this case, however.

When is the Government going to wake up and realise we have a crisis in pensions? What action will it take to examine the cabal at the top of the pensions industry? The same organisations, IPT, Mercers and Irish Life, appear on all sides of the fence in this arrangement while pensioners' living standards are being utterly decimated and the Government sits on its hands.

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