The introduction of pre-funding for State pensions by the Minister for Finance has been welcomed by the Irish Association of Pension Funds. IAPF chairman Mr Tom Finlay yesterday said that given the economy's underlying strength this move was timely and a strong affirmation of its commitment to implementing the recommendations from the Pensions Board report.

The proposed rate of funding for pensions is 1 per cent of GNP but Mr Finlay said, even although it fell short of the 3.5 per cent of GNP needed to fully fund for future liability, he was confident the Minister would address the matter.