The Irish Association of Pension Funds has warned that a number of private sector defined benefit pension schemes will come close to collapse over the coming months unless remedial action is taken to protect them.
Opening the Association's annual conference, Chairman Patrick Burke said it would be bringing proposals to the Government on ways to address the problems faced by pension funds operating amid the current market turmoil.
Mr Burke also suggested that the Government should consider introducing short-term measures to allow members of defined contribution pension schemes, who are about to retire, to defer the purchase of the annuity that will pay their pension during retirement.
Due to the turmoil in the markets, the cost of buying an annuity has increased, placing those who are in schemes where annuities have to be bought immediately on maturity in a difficult position.
Mr Burke said discussing such measures was uncomfortable territory for those involved in pensions, and taking the necessary action would require courage to be shown by Government, pension fund managers, administrators and trustees and the social partners.
But he added that failure to take action could lead to workers being let down.
The proposals were welcomed by Age Action Ireland, which said that everyone needed to think outside the box during such a difficult economic time.
But the Minister for Social, Community and Family Affairs, Mary Hanafin, said there was no evidence of any pension schemes collapsing to date.
Speaking to RTÉ News following her address to the conference, Minister Hanafin said most people nearing retirement should have had their savings put into safe funds by their pension trustees and so should not have been effected by the current turmoil.
She added that the Government was continuing to work on a long-term strategy for pensions, which should be complete by the end of the year.
