The Pensions Board opened 150 investigations last year into construction companies, the organisation said today. At the launch of its 2008 annual report. the board highlighted the practice of some building firms deducting pension money from workers' pay packets and failing to pass it on to their retirement schemes.
The board's chief executive said too many pension schemes did not take account of the investment risks they were running last year. Brendan Kennedy said that while pension losses were unavoidable last year, the experience was 'worse than it could, or should, have been'.
Mr Kennedy said many people's retirement plans were badly affected by the falls in world investment markets.
'There has also been a significant deterioration in the solvency of defined benefit schemes where very few schemes now meet the funding standard, and a small number do not have enough assets to meet the liabilities of current pensioners,' he said.
Mr Kennedy said the board was concerned that too many defined benefit schemes did not take enough account of investment risks, and often it seemed that their main concern was to keep contributions to a minimum.
The Pensions Board says it is equally concerned by how poorly defined contribution schemes had performed.
Another issue it is concerned about is the practice of some construction companies deducting pension money from workers and failing to pass it on to their retirement funds. In one case last year the board successfully applied for a High Court order directing Limestone Construction, based in St Margaret's in Dublin, to repay €180,000.
In that case the defendant failed to appear in court and a bench warrant has been issued for his arrest. It is a sign that the board is trying to get tough. But the large number of investigations shows the problem is a significant one.
The Pensions Board regulates occupational pension schemes and Personal Retirement Savings Accounts, and also advises the Government on pension issues.
Meanwhile, the Minister for Social & Family Affairs, Mary Hanafin, has said the odds are against the Government's establishing a pensions protection scheme. She said that such a scheme had proved very expensive in the UK.
