David Stanton (Cork East, Fine Gael)
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Question 825: To ask the Minister for Social and Family Affairs his views on the fact that only 40% of occupational pension schemes that reported to the Pensions Board in 2005 failed to meet the funding standard required under legislation; the action he will take to rectify this situation; and if he will make a statement on the matter. [2468/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The current minimum funding standard, which applies to defined benefit, DB, occupational pension schemes under the Pensions Act 1990, is a wind-up standard. It is designed to ensure that, if a funded DB scheme winds up, there are sufficient assets to meet the liabilities at that point in time.

However, that is only one aspect of the overall funding standard regime. Provisions which are in place provide a mechanism to enable under-funded schemes to return to full funding within a defined period and in a planned and managed way whether the shortfall relates to the asset or liability side of the fund. These provisions were recommended in a review of the funding standard by the Pensions Board, completed in December 2004, and implemented via the Social Welfare and Pensions Act 2005.

At the end of the day there is no magic formula to address these issues. I believe the current regime achieves the required balance between member protection and encouraging continued pension provision. However, I am aware concerns continue to be expressed and I will be asking the Pensions Board to review the situation.

David Stanton (Cork East, Fine Gael)
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Question 826: To ask the Minister for Social and Family Affairs his views on whether the pensions system is unattractive to young people; and if he will make a statement on the matter. [2469/06]

Séamus Brennan (Dublin South, Fianna Fail)
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In 2004 just over 52% of those at work had a supplementary pension. This figure falls to about 23% for those aged 20 to 24. Coverage figures for those aged 25 to 34 is approaching the overall average at just over 50% while those in the age bracket of 35 to 44 have a coverage rate of over 62%.

Clearly, coverage among younger workers is a problem and the Pensions Board has sought to target this particular group through its pensions awareness activities. The reasons people do not contribute to pension schemes are many and varied. People may have other priorities in their earlier years, such as house purchase, but there may also be a degree of complacency involved with savings for retirement being well down their list of priorities. The long-term nature of pensions savings and the lack of access to these funds have also been cited as disincentives to participation.

I recently published the report of the Pensions Board on the National Pensions Review and this contains recommendations designed to make pensions saving more attractive for the public. I will be discussing the further development of policy in the pensions area in the light of the recommendations of the report.