The failure of a large number of defined-benefit pension schemes, involving an estimated 30,000 workers, to submit recovery plans to the regulator before 30 June confirms, if we needed it, the crisis facing the pensions of thousands of workers across the country and illustrates the absolute need for the Government to intervene in this crisis. Many schemes will close over the coming months. On Monday, for the first time ever, we witnessed IBEC, ICTU, the Irish Association of Pension Funds and the Society of Actuaries in Ireland collectively calling on the Government, particularly the Minister for Social Protection, to take immediate action to avert the crisis. They made the telling point that Government inaction is making the matter much worse.

Failure to submit a recovery plan will force many trustees and sponsoring employers to make choices either to continue with schemes, to wind them up if they are in deficit or to realign their priorities. The Government said it would legislate for this. Just to make this concrete, we are faced with a scenario in which many retired executives will continue to receive pensions of up to €150,000 but a worker at 64 years of age in such a scheme may end up with nothing at all when he retires. Recently, people have lost up to 70% of their expected entitlements in some schemes. This is simply unacceptable.

The alliance that came together on Monday stated that over the coming months many schemes will unravel in an inequitable and unjustified way. The programme for Government promised to amend the Pensions Act 1990 to deal with this particular crisis. The recent Social Welfare and Pensions (Miscellaneous Provisions) Bill failed to do so. When does the Government intend to deal with this particular crisis and introduce the legislation it promised in the programme for the Government?

This is an issue of considerable importance to thousands of workers around the country. Obviously, the Minister for Social Protection is well aware of this. The Government has yet to consider the submissions made arising from the requirement to submit plans and how it is proposed to deal with them.

Strong regulation of defined benefit pension schemes is essential to protect scheme members and the taxpayer. Stronger pension regulations could have prevented the situation in which some workers have lost almost all of their pensions. It is harrowing to speak to somebody who worked all their lives but found their expected pension diminished or gone entirely. Those calling for further regulatory forgiveness should reflect on the consequences of what light-touch regulation has brought about in this case and in the financial sector.

We cannot stand over a situation of allowing employees, by virtue of their employment contracts, to be forced to make contributions into a pension scheme from which they may never get a pension. It is morally wrong to expect workers, by contract, to pay into a pension scheme from which they may never draw a pension. The persistent funding difficulties of many of these defined benefit schemes due to increased life expectancy and the financial downturn is well recognised. Employers, unions and trustees have been making strenuous efforts to protect the viability of their schemes and many measures have been introduced to support them.

The funding standard for defined benefit schemes was suspended in 2008 following the downturn in the financial markets to give trustees and sponsoring employers adequate time to get their schemes in order and to consider a response to improving the funding position. Following the reintroduction of the funding standard in June 2012, pension schemes were required to submit funding proposals to the Pensions Board by 30 June 2013. We have had some initial reflections on the outcome of this. Where funding proposals have not been submitted, the Pensions Board will formally contact the schemes in question to ascertain their particular circumstances. The board will decide what steps to take on a scheme-by-scheme basis, taking into account the individual scheme’s circumstances.

It must be emphasised that trustees are required to meet their legal obligations. Ultimately, the Pensions Board will use its regulatory powers where underfunding is not properly addressed.

A number of things have happened. Significant changes in social welfare and the Pensions Act 2009 allowed for the restructuring of underfunded schemes by removing the priority given to post-retirement schemes for pensioners to ensure a more equitable distribution of assets in the event of a wind-up of a defined benefit scheme. The powers of the Pensions Board were strengthened to ensure pension contributions were remitted by employers to scheme trustees. The pensions insolvency payments scheme was established to reduce the cost of purchasing pensions for trustees where the employer became insolvent. Legislation was introduced in 2010 and 2011 to provide for the option of a sovereign annuity for trustees. Changes to the defined benefit model and the funding standard were introduced last year in the Social Welfare and Pensions Act, including the introduction of a risk reserve. The reintroduction of the funding standard followed the recent announcement by the Minister for Social Protection of a number of regulatory changes to assist defined benefit schemes as they prepared funding proposals. Legislation has since been enacted in the Social Welfare and Pensions Act 2013 to strengthen the powers of the Pensions Board. I expect the Minister for Social Protection to report to the Cabinet on the outcome of the response to the Pensions Board in due course.

That is an extremely depressing response. The Taoiseach has simply read out what the Minister for Justice and Equality read out yesterday in the House to Deputy Willie O'Dea, who had raised this issue. The Government is fiddling on it, while pensions are burning fast. Schemes may close in the coming weeks and months, with no respite for workers. We know what happened in the case of Irish Permanent TSB following the Mercer report. The Taoiseach gave an order to cut the pay of executives by 6% to 10% and they decided to hit the defined pensions benefit scheme, leaving workers with absolutely nothing in many cases. The Taoiseach said it was morally wrong. Thousands of workers are now at risk every day. We know that 212 companies failed to submit recovery plans involving about 30,000 workers. The reason they did not submit recovery plans is that they are in dire straits, not to speak of the other 100,000 workers whose companies did manage to submit such plans but which could also be in difficulty. Potentially, up to 200,000 workers are involved in such schemes. We know that 30,000 workers were involved in schemes that could not even submit a recovery plan to the Pensions Board. The Minister promised in October 2011 to bring forward legislation to amend the priority order. She subsequently promised in September 2012 to bring forward legislation to amend the priority order, but she has failed to do so. Legislation was brought before the House recently and there was a full expectation on all sides that the issue would be dealt with. There may be a number of options through which it can be dealt with, but the Government made a commitment in its programme for Government to amend the Pensions Act 1990, but it has not done so, despite the fact that we are facing an imminent crisis in the pensions of many workers. The Taoiseach is right that it is wrong for people aged 63 years to face the prospect of receiving very little when they retire, but he can do something about this. He promised that he would, but he has not. Is there any timetable for the legislation to which the Government committed? When can we expect to see it?

The first thing we have to do is to determine the facts and the circumstances that apply. I referred to the consequences of light touch regulation and the financial downturn which have affected thousands of workers. Clearly, the Deputy agrees with this. It is wrong to expect workers to contribute under a employment contract to a defined benefit pensions scheme from which they may never draw a pension. I regard that as immoral. It is just ten days since the deadline passed for the submission to the Pensions Board of proposals by employers in respect of defined benefit pension schemes. It is only right and proper that we ascertain the absolute facts. I have heard some figures being bandied about, but we need to know the facts and I expect the Minister for Social Protection to bring to the Cabinet her analysis of the responses submitted. The Cabinet will then have to reflect on them.

The recent decision of the European Court of Justice in the Waterford Crystal case means that there is a great deal of work to be done before the Government can arrive at a comprehensive policy and a legislative framework to deal with the issues affecting defined benefit schemes in general. The Deputy is aware of this. The issue has been ongoing for many years and there have been a few serious court cases about it. We do not want to have a situation where the taxpayer becomes the paymaster for all of these schemes.

That has nothing to do with the Waterford case.

It is only right and proper, in the interests of the taxpayer, that the Government be in a position to know the facts before it decides on a legislative response.

The Government knows what the facts are.

The matter is far too serious to be flippant and say we can have an answer in the morning. This issue has dragged on for a long time.

The Government is dragging it out.

We need to find out the facts before the Government can respond comprehensively and properly in the interests of workers, unions, employers and the taxpayer.

How many of them will have gone under by then?

We need to know the facts and the Minister for Social for Protection will bring her report to the Government in due course. The Government will decide how best to address the matter. It is an enormous challenge, as the Deputy is aware.

You created this mess in the first place.

I call Deputy Gerry Adams.

Fianna Fáil is responsible for-----

Please refrain. I have called Deputy Gerry Adams and I expect attention.