Sean Barrett (Independent) | Oireachtas source

On the issue of pensions in general, trustees must face up to their responsibilities. In regard to the casual addition of extra years or early retirement schemes which run up deficits amounting to hundreds of millions of euro, people must examine their situations so that we do not get a repeat of what happened to the banks in 2008. I note there are complaints on the adjoining island about high administration costs and low investment returns. One of the excuses given for pension funds getting into difficulties is that increases in longevity were unforeseen. I noted previously to the Minister for Social Protection that it has been known for at least 100 years that longevity is increasing. Pension fund trustees have a responsibility not to present bankrupt situations to the Government and asking to be bailed out. In general, financial services in Ireland have not been regulated tightly enough, and pension funds are part of that. Irrespective of whether the board can manage alone or whether pensions schemes should be regulated by the Central Bank, it is part of the picture of a non-performing financial sector, which the Government should address. In regard to the casual way in which red ink appears on pension funds, with the potential consequence of causing disputes and strikes, the causes might bear examination. It would be useful to develop some procedure by which the trustees can explain to members how these deficits were run up.