State under fire for use of pension fund

THE Government’s decision to use the National Pension Reserve Fund to recapitalise the banks has been severely criticised by the OECD.

The report, on private pensions and policy responses to the financial and economic crisis, also shows that Irish private pension funds lost 35% last year — more than similar funds in any of the other 37 developed nations surveyed.

A separate report, from the human resources consultants Hewitt Associates, estimates that as much as 90% of defined benefit pensions were failing the minimum funding test and would be unable to pay out unless they were overhauled.