Three-quarters of all Irish defined benefit pension schemes are in deficit, according to the Pensions Board.

In its annual report published this morning, the statutory body responsible for pension provision said the deficit is substantial in many cases .

The board has granted a number of extensions to schemes to submit their funding proposals to allow them time to deal with their funding deficits.

Chief executive Brendan Kennedy strongly criticised the heavy focus on equity exposure in Irish pensions funds, noting that there has been “no noticeable reduction" by Irish schemes of their aggregate equity exposure.

“In very many cases, trustees have not faced up to the issues, and are continuing to expose the benefits of their members to significant risks of further losses,” he said.

Highlighting the role played by pension trustees, particularly in defined contribution schemes, Mr Kennedy said that trustees must ensure that the investment choices made available to members are appropriate. “This clearly includes ensuring that scheme costs are kept to reasonable levels,” he said.

The report said the number of active defined benefit schemes registered with the board declined in 2010 to 1,108 from 1,307. Similarly, the number of defined contribution schemes also decreased, falling by 7,756 to 75,183.

Some 260,000 people were members of defined contribution schemes in 2010, a drop of just over 7,000 on 2009. The number of personal retirement savings accounts continued to increase last year, the report found.