Occupational pension arrangements are voluntary; it is not compulsory for employers to provide such schemes for their employees. The benefit structures including the provision of increases are covered in the trust deed for each scheme.
I have asked the Pensions Board to consider the issue of the indexation of occupational pensions generally and I will consider the board's report during the preparations for the occupational pensions Bill which I expect to publish early in 2000.
Occupational pensions arrangements are trust-based; the trustees of the individual schemes are responsible to the scheme members in relation to matters such as choice of provider, investment of funds, etc. On this point, I would draw the Deputy's attention to the Government's acceptance in principle of the Pensions Board's recommendation in its report on the National Pensions Policy Initiative, Securing Retirement Income, which related to the introduction of a new pensions savings vehicle, the Personal Retirement Savings Account. This will be a simplified pensions savings mechanism which, it is hoped, will encourage more providers to enter the market-place and allow greater choice for the consumer. The legislative framework for the introduction of PRSAs will form part of the new pensions Bill referred to above.
In relation to regulation, as the Deputy will be aware, the Pensions Board, established under the Pensions Act, 1990, is a statutory agency under the aegis of my Department. Its role is to promote the security of occupational pensions through regulation, promote the further development of pensions in Ireland and to advise the Minister on pension matters generally.
