Further measures to improve pensions, says Hanafin

FURTHER MEASURES to protect occupational pensions are to be introduced by Minister for Social and Family Affairs Mary Hanafin.

She said she was very conscious of the impact the current global recession was having on the value of Irish pension funds. It was estimated, she said, that in excess of 90 per cent of defined benefit pension schemes were in deficit. This was presenting trustees of pension schemes with significant challenges in their efforts to optimise the benefits for pension scheme members, and the Government had put measures in place last December to ease funding pressures.

“While these measures were helpful in the short-term, I would like to signal to the House my intention to bring forward a number of further measures which will support the job of the trustees of these schemes in meeting the challenges that confront them and provide greater flexibility and regulatory support to improve the affordability and viability of define benefit pension schemes.”

Ms Hanafin said she would also be amending the National Treasury Management Act. The Minister was speaking during the debate on the Social Welfare Bill, giving legislative effect to the Budget’s welfare provisions.

She said that in deciding on where to achieve savings in welfare expenditure, there were no easy options, but, with borrowing and taxes having to be increased to pay the rising welfare bill next year, choices had to be made.

“The harsh reality is that if some cuts were not made now much tougher ones would have to be made later,” said Ms Hanafin.

“It is important that all of us as public representatives are upfront with the people about the stark choices that are required at this time.’’ She said that almost €21.3 billion was being provided for welfare services this year.