Universal pensions concept ‘parked for too long’, says IAPF

The idea of universal pensions has been “parked for too long”, while solvency measures for defined benefit schemes should be reconsidered, the Irish Association of Pension Funds (IAPF) will say at its annual benefit conference in Dublin today.

The IAPF is urging Minister for Social Protection Leo Varadkar to "start something now" on universal pensions.

The valuation of the liabilities in company defined benefit pension schemes continues to threaten the future of these schemes, the IAPF will warn. It argues that some employers have closed schemes as a result of the valuation rules, rather than an inability to pay out future benefits.

The number of active defined benefit schemes has fallen from about 1,200 at the end of 2006 to fewer than 500 today, while the number of active members, or people paying into defined benefit schemes through salary deductions, has dropped from 270,000 to 126,000.

"It feels, as it so often does in pensions, that we are at a crossroads," said IAPF chief executive Jerry Moriarty.

“Standing at a crossroads can be confusing, what to do, where to go. But ultimately you have to choose a direction to move in or you will get nowhere.”