Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 133: To ask the Minister for Social and Family Affairs the number of defined benefit and defined contribution company pension schemes in operation; and if she will make a statement on the matter. [44603/08]

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 134: To ask the Minister for Social and Family Affairs the number of persons registered in defined benefit and defined contribution schemes; and if she will make a statement on the matter. [44604/08]

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 135: To ask the Minister for Social and Family Affairs if her attention has been drawn to the fact that a number of pension schemes are expected to collapse within the next six to 12 months; if she will provide details of these schemes; if the Government will be in a position to respond in the event of a pension scheme collapse; and if she will make a statement on the matter. [44605/08]

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 136: To ask the Minister for Social and Family Affairs the estimated total private sector pension deficit as at year end 2008; and if she will make a statement on the matter. [44606/08]

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 137: To ask the Minister for Social and Family Affairs if she has plans to alter the private sector pension regulatory environment to make the minimum funding standard more flexible for struggling pension funds; and if she will make a statement on the matter. [44607/08]

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 138: To ask the Minister for Social and Family Affairs if she plans to require occupational defined benefit pension funds to get insurance; and if she will make a statement on the matter. [44608/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Question Nos. 133 to 138, inclusive, together.

The overall number of active defined benefit schemes registered with the Pensions Board at the end of 2007 was 1,319. The number of active defined contribution schemes was 98,483. The active membership of these schemes at that time was 530,933 and 269,465 respectively.

The Pensions Act provides for a minimum Funding Standard which defined benefit pension schemes must meet on an ongoing basis. Generally speaking, the Standard requires that schemes maintain sufficient assets to enable them to discharge accrued liabilities in the event of a scheme winding up. Where schemes do not satisfy the Funding Standard the sponsors/trustees must submit a funding proposal to the Pensions Board to restore full funding within three years. The Pensions Board can allow a scheme up to ten years to meet the standard in certain circumstances.

In 2007, 81% of defined benefit schemes reporting to the Pensions Board passed the Funding Standard. Most of those schemes failing the test had a funding proposal in place. It is expected that the number of schemes failing the funding standard will increase significantly in the coming year.

Estimates suggest that defined benefit pension schemes have sustained some €20 billion of investment losses this year. While it is expected that the number of schemes failing the Standard will increase sharply as a result of current market conditions, the extent of the problem will not be fully apparent until schemes carry out end of year actuarial assessments and report the results to the Pensions Board as required under the Pensions Act. In recognition of the current market difficulties and the difficult decisions that pension schemes will face, the Government has put in place a number of short-term measures to ease the pressure on schemes. It has been agreed with the Pensions Board that an additional six months will be allowed for trustees to prepare funding proposals. This will mean that schemes will have 18 months to review the situation with sponsoring employers and to formulate proposals for recovery. These actions are being taken to alleviate the current situation.

Members of Defined Contribution schemes have also been exposed to investment losses. In such schemes the risk is borne in full by the member. Many of these schemes are relatively immature and for many people there will be adequate time to recoup some or all of the losses which have occurred.

There are particular concerns for those who may be at, or close to, retirement. Good practice would suggest a conservative approach to investments in the last number of years before retirement but anecdotal evidence suggests this may not have been applied in some cases. Members of defined contribution schemes are required to purchase an annuity at the point of retirement. In the current environment, these scheme members could realise a significant loss in the value of their pension fund. In the circumstances, the Department of Finance is currently working out the details on how such scheme members could avail of a period of up to two years to purchase an annuity. There is, of course, the risk that those availing of the deferment option could sustain further losses and this will be clearly outlined in guidance notes.

The Government is working with the Pensions Board, representative organisations and the social partners to find ways to ease the pressure on schemes by striking a balance between the long-term nature of pension savings and the need to ensure short-term security of accrued benefits. As outlined, it has already taken some short-term measures in this area. The long-term response to the situation is being considered in the context of the Green Paper on Pensions and any changes proposed will be announced in the context of the overall framework for pensions which the Government has indicated it will announce in the near future.