Government accused of ‘fiddling’ over pensions

The Government has been accused of “fiddling” while pensions burn fast, in a Dáil row over the crisis in defined benefit schemes.

Fianna Fáil leader Micheál Martin made the accusation and said there was an "absolute need for the Government to intervene" in a crisis affecting 30,000 workers.

Taoiseach Enda Kenny said they could not stand over a situation allowing employees to be forced to make contributions into a pension scheme from which they may never get a pension. "It's morally wrong," Mr Kenny said.

He said strong regulation of defined pension schemes was essential to protect scheme members and the taxpayer and stronger regulation could have prevented problems arising.

And he said “those calling for further regulatory forgiveness should reflect on the consequences of light tough regulation”.

Mr Martin raised the issue in the wake of the failure of companies operating such pensions to produce recovery reports to the pensions' regulator before a June 30th deadline.

He said there was an “absolute need for the Government to intervene in this crisis”.

“The Government is fiddling on this issue. Pensions are burning and burning fast. Schemes may close in the coming weeks and months.”

Many schemes would close in the coming months and there was an unprecedented alliance between employers' group Ibec, the Irish Congress of Trade Unions, the Irish Association of Pension Funds and the Society of Actuaries who Mr Martin said had stated: "Government inaction is making the matter much worse indeed".

Many retired executives would continue to receive pensions of €150,000 but a worker at 64 years of age in such schemes may end up with nothing at all, the Cork South-Central TD said.

The Government had promised to amend the pensions act.

Mr Kenny said it was an issue of considerable importance but it was only 10 days since the June 30th deadline. He said trustees were required to meet their obligations and the Pensions Board would work on a case-by-case basis in dealing with each of the schemes that had not met the deadline.

Many measures had been implemented to support these schemes. He said the Minister for Social Protection was well aware of the issue and the Government would consider the issue in due course.