Coverage of Occupational Pension Schemes

The first attempt to estimate the coverage of occupational pension schemes was made in a discussion paper issued by the Department of Social Welfare in 1976. The information in that report referred to the number of employees covered around 1974. Accordingly, Hughes# estimated that there were 230,000 members of schemes in 1974, which was 26.7% of workers in the private sector.

In 1985 the Department of Social Welfare commissioned Keogh and Whelan to carry out a national survey# of occupational pension schemes and to estimate their coverage. Accordingly it was estimated that there were 283,600 members in 2,457 schemes, which was 32.3% of workers in the private sector. Of the 2,457 schemes, only 6% had been established prior to 1960, 42% had been established between 1961 and 1975, and the remainder between 1976 and 1985. The estimated membership figure in the public sector for 1985 was 231,000.

It is only since the publication of the annual reports of the Pensions Board that exact figures as to the membership of pension schemes have become available. In December 1995 there was a total membership of 282,120 in occupational pension schemes. This was composed of 144 persons in one member defined benefit schemes; 203,002 persons in other defined benefit schemes; 37,217 persons in one member defined contribution schemes and 41,757 persons in other defined contribution schemes. The total number of schemes with a membership greater than one was 1,923 defined benefit schemes and 5,348 defined contribution schemes. 56 defined benefit schemes with a membership greater than 500 per scheme account for 100,320 of such members.

The Annual Report of the Pensions Board for 1994 comments that there are nearly three members of defined benefit schemes for every one member of defined contribution schemes. It also states that compared to the position at the end of 1993, there has been a reduction in the number of defined benefit schemes and in the number of persons who are active members of such schemes and a significant portion of the new schemes registered during 1994 were defined contribution. In December 1995 the number of members of schemes in the public sector was 202,760, 17 of such schemes with a membership greater than 1,000 account for 195,808 members. In the public sector there is 100% pension coverage for permanent employees. In 1995 total public sector employment was 294,000 as compared with private sector employment of 759,000#.

In 1995 the number at work was 1,234,000, (which includes a figure of between 250,000 and 300,000 for the self employed) the membership of occupational pension schemes comprised 282,120, which means that there are around 477,000 employees in the private sector who are not active members of occupational pension schemes.

The Pensions Board has concluded that a comprehensive survey should be carried out to establish the extent to which income earners have supplementary cover under occupational and personal pension arrangements and the adequacy of this coverage in terms of maintaining established living standards. The survey was carried out during 1995 by the Economic and Social Research Institute on behalf of the Pensions Board and the Department of Social Welfare as a joint project. The results of the survey are expected towards the end of 1996.