Hanafin rules out workers’ pension protection scheme

THE Government is unlikely to introduce any pension protection fund for workers despite official estimates that 90% of defined benefit pension schemes are presently underfunded.

The Minister for Social and Family Affairs Mary Hanafin yesterday effectively ruled out a scheme which would provide some kind of protection to employees nearing retirement who have seen their pension funds lose a large proportion of their value over the past year.

Proposals for the introduction of a pension protection fund have been raised by trade union representatives during talks between the social partners over the past few months.