Dáil Éireann debate -
Wednesday, 10 Jun 1992

Vol. 421 No. 1

Written Answers. - Pension Funds.

Paul Connaughton

Question:

5 Mr. Connaughton asked the Minister for Social Welfare if he will outline the total value of Irish pension funds; if he has satisfied himself that adequate measures are in place to protect such pension funds and that contributors have access to sufficient information concerning all aspects of investment management procedures of such pension funds.

Bernard J. Durkan

Question:

32 Mr. Durkan asked the Minister for Social Welfare if he will outline the extent to which pension funds in the public or private sector are currently supervised; if he will further outline the differences, if any, between the benefits available to men or women under such schemes; and if he will make a statement on the matter.

Minister for Social Welfare (Mr. McCreevy)

I propose to take Questions Nos. 5 and 32 together.

The total asset value of Irish pension funds at the end of 1990 was estimated to be IR£8,100 million.

The Pensions Act, 1990 which came into effect in January, 1991 safeguards the interests of members of occupational pension schemes by setting down minimum standards which all schemes will have to comply with. It provides for a regulatory framework for the future supervision of pension schemes.

The provisions of the Act include the introduction of a statutory minimum funding standard for certain funded schemes, the mandatory disclosure of information to scheme members and clarification of the duties and responsibilities of scheme trustees. The Act also provides for the establishment of a new statutory board to monitor and supervise the new statutory requirements.

The new minimum funding standard is designed to ensure that, over a period, there are sufficient funds in a scheme to meet liabilities in the event of the scheme being wound up. Under the disclosure provisions the trustees of a scheme are required to produce annual reports and audited accounts of their scheme and to disclose a comprehensive range of other information to members concerning the operation and the financial procedures of the scheme. There are strict penalties for trustees of schemes who fail to comply with the regulations.

Overall I am satisfied that these measures provide a high degree of security of members pension entitlements.

Part VII of the Pensions Act provides for equal treatment for men and women in occupational pension schemes. A recent survey of pension schemes reveals that there are some areas where differences still exist.

—5 per cent of schemes surveyed had different retirement ages for men and women.

—12 per cent schemes surveyed have provision made for payment of widows pensions to the survivors of male members of the scheme, but no provision is made for the payment of widower's pension to the survivors of female scheme members.

The Pensions Board have advised me to bring the provisions of Part VII of the Act into effect form 1 January 1993. I will shortly be introducing an order bringing Part VII into effect from that date.