Richard Bruton (Dublin North Central, Fine Gael)
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Question 190: To ask the Minister for Social and Family Affairs the assessment which she carried out of a scheme that would provide mutual insurance among pension funds in order to cover the situation where pension deficits threatened those people without pension cover; the cost and benefit of such a scheme; and if she will make a statement on the matter. [7804/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The pension rights of scheme members are protected through trust law and by provision in the Pensions Act 1990 as amended. Defined benefit pension schemes are required to comply with the funding standard provision set out in the Pensions Act. This funding standard requires defined benefit pension schemes to maintain sufficient assets to enable them discharge accrued liabilities. 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. As the deputy is aware, in recognition of the current market difficulties and the challenges facing pension trustees, the Government has recently announced a number of short-term measures aimed at easing the pressures on defined benefit schemes.

In relation to the long-term context, 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. Any decision on the introduction of a fund such as that suggested by the Deputy will be considered in consultation with all relevant Departments and proposals thereafter will be reflected in the National Pensions Framework which the Government will announce shortly.