The Pensions Board has warned that many workers face the prospect of lower retirement incomes because their pension funds are in deficit.
Irish workers have invested €70 billion in pension funds.
Launching the Pension Board's 2009 Annual Report, Chairman Tiarnan O'Mahony said that while pension funds had performed strongly last year, this had not offset the very significant investment losses incurred in 2007 and 2008.
Around 75% of defined benefit schemes - which are viewed as the safer pension funds - are in deficit. Some of those deficits are substantial.
He also said that many workers in defined contribution schemes - where the employee carries the risk if the fund does not perform - faced the prospect of lower retirement incomes.
The Pensions Board's chief executive Brendan Kennedy said not all pension management was adequate or even competent. He criticised the risk management and investment strategies of many schemes.
The Pensions Board also queried the quality of professional advice given to pension trustees regarding risk and investment.
It said that in many cases, there had been very little risk reduction in the funds in which many members are invested, along with over-optimistic investment return assumptions.
He warned that the chances of further losses remain too high.
Chairman Tiarnan O'Mahony also said that the Pensions Board has neither the staff nor the skills to effectively monitor and supervise regulated entities and products.
He said that by far the most serious compliance issue facing the board involves instances where construction employers had deducted pension contributions from workers for the mandatory Construction Workers Pension Scheme, but had failed to remit the money to the pension fund.
300 cases have been notified to the Board since 2007, with three prosecutions so far and more pending.
Chief executive Brendan Kennedy described this as the theft of employees' monies and an inexcusable exploitation of employees, many of whom may not feel able to protest because of fears for their jobs.
He said the current economic difficulties in the construction sector are no justification for this behaviour.
Mr O'Mahony also said he welcomed the publication of the Government's National Pensions Framework last March.
He hoped that implementation of the framework would mean that over the next 20 years Ireland would be in a position where most, if not all, workers could look forward to some form of supplementary pension on retirement.
At present, almost half of Ireland's workforce have no supplementary pension provision over and above the minimum state pension.
In addition, the Board confirmed 41 on the spot fines had been issued last year for offences under the Pensions Act.
