Dáil Éireann Debate, Thursday - 27 May 2010
187 Deputy Róisín Shortall asked the Minister for Social Protection if his attention has been drawn to the fact that a number of defined benefit pension plans have cut the accrued benefits payable to their members, and the Pensions Board expects the number of such plans to increase significantly during 2010; the action he is taking to address this problem. [22618/10]
Amharc ar fhreagraThere are almost 1,200 defined benefit pension schemes subject to the Funding Standard. In the last 12 months, the Pensions Board has processed 5 applications from schemes, under Section 50 of the Pensions Act, to reduce benefits. Four of these were approved and one rejected. Another application is pending. The Pensions Board acknowledges that, given recent economic difficulties, further applications may be made under Section 50 of the Pensions Act.
Due to the economic downturn, approximately 90% of defined benefit pension schemes were underfunded at the end of 2008. The vast majority of these schemes opted to work with the Pensions Board to devise a funding proposal aimed at recovering their financial position, rather than opt for cutting promised benefits by restructuring their pension schemes.
Overall returns for pension schemes in 2009 averaged at more than 20% and went some way to assisting schemes in their attempts to recover their funding positions. Reflecting this, a survey by the Pensions Board at the end of 2009 suggested that the number of underfunded schemes had reduced to 75%. Although this is an encouraging indicator, it is crucial that we continue to assist schemes in their recovery. This is why the Pensions Regulator recently announced an extension of the deadline for submission of funding proposals for those due to submit before 30 June next by 5 months, to 30 November 2010.
188 Deputy Róisín Shortall asked the Minister for Social Protection his views on the proposals to facilitate the use of Irish Government bonds rather than overseas bonds in the purchase of pensions. [22620/10]
Amharc ar fhreagraAn annuity is a financial product which provides for the payment of a pension for a set period or for life. The Irish Association of Pension Funds and the Society of Actuaries in Ireland have made a proposal in relation to Irish pensions schemes purchasing annuities invested in Irish Government bonds. There are a number of complex issues involved. The matter is being examined by officials of my Department together with officials of the Department of Finance and the Pensions Board.
