Report reveals pension schemes will collapse
It is claimed tens of thousands of workers could have their pensions wiped out over the next six months.
A confidential memo to Government from the Social and Family Affairs Minister Mary Hanafin reveals a total pension deficit of between ?20 and ?30 billion is expected.
This confidential document, seen by a Sunday newspaper, spells out in no uncertain terms that a number of high profile pension schemes are expected to collapse.
That is three times the level of capital needed to bail out Irish banks.
There are currently around 100,000 schemes in Ireland - two thirds of which are defined benefit ones, where the employer bears the investment risk.
More than 90 per cent of these are expected to report a deficit to the Pensions Board.
The memo predicts the public collapse of a number of schemes over the next six months and warns that it would be impossible for the Government to pick up the shortfall because of budgetary constraints - no matter how strong the pressure might be.