Pensions

In recent years the Irish DB pension system has been overtaken by a catastrophic crisis. A close examination of the Pension Authority shows the scale of the unfolding calamity. From a peak of 1,500 healthy vibrant DB pension schemes a few years ago, which had nearly 300,000 active members, only 715 schemes continue to meet the Minimum Funding with little more than 100,000 active members. The Pensions Authority suggests that in 2015 60% of the surviving schemes remain vulnerable. To date the government has chosen to ignore this problem as if it has nothing to do with them. When opportunist employers decide to walk away from their pension promise the State and the Regulator do nothing to protect scheme members. Most of the schemes that are in trouble are well run and have recorded signi cant appreciation in asset value in recent years. However DB provision is regulated on the basis of the so called Minimum Funding Standard and liabilities are calculated on bond yields and annuity prices. This has the effect of massively ovevaluing scheme liabilities Schemes are being forced into unnecessary wind-up and the signi cant assets are squandered on over-priced annuities. Offcial indifference to date means we are sleepwalking into an avoidable pension catastrophe where workers will be the losers. The resultant reduction in the coverage and quality of second pillar coverage suggests that if the next generation of workers is to enjoy any form of occupational pension provision, a start needs to be made on developing a universal occupational scheme involving contribution by employers, workers and the State Therefore, Conference calls for the immediate introduction of employer debt legislation such as exists in the UK since 1995, and The establishment of an expert Commission, including stakeholders, to devise a plan to protect the remaining assets of the DB schemes, to maximize the commitment of employers and to ensure that as much as possible can be salvaged in the interests of the all scheme members. The early introduction of a universal occupational pensions scheme. By raising the pension age to 68 the State will con scate up to 36,000 contributory old age pension entitlement for PRSI payers. Ireland will soon have the highest pension age in Europe. By changing the rate bands for PRSI contributions in 2012, the State has taken 1,500 per annum from many working women in a blatant example of gender discrimination. Conference calls on government to end this gender discrimination immediately, and not to raise the pension age further.