Industry groups look for Minister to act on the report's proposals, writes Dominic Coyle

The publication of the National Pensions Review report was broadly welcomed by industry groups yesterday.

The proposed introduction of SSIA-style matching contributions - where the Government would pay €1 into a Personal Retirement Savings Account (PRSA) for every €1 invested by the individual - drew particular praise as did the recommendation that people be allowed limited access to their funds before retirement.

The Society of Actuaries said the inability to access pension funds for 30 or 40 years "will remove one of the key barriers to pension saving".

However, there was some disquiet at the failure of the Minister for Social and Family Affairs Séamus Brennan to take the opportunity to announce that the Government would implement some or all of the key recommendations of the report that he commissioned one year early because of failure of existing incentives to encourage people to save for their retirement.

More than two months after receiving the report, the only concrete measure taken by the government on pensions has been a Budget Day proposals to cap pension funding for high earners and force holders of Approved Retirement Funds to draw down at least 3 per cent of their savings annually - measures that will add around €36 million to Government coffers annually if approved in the Finance Bill.

Finance minister Brian Cowen has kept open the possibility that the Finance Bill - or the Social Welfare Bill that follows soon after - may yet contain measures to incentivise pension savings.

However, Mr Brennan yesterday played down expectations of swift action. He announced plans for a national forum to debate the "central issues" raised in the report compiled by the Pensions Board and said the forthcoming partnership talks provided an opportunity to place pensions on the agenda.

"In time, the Government will reach some conclusions on the various proposals," he said yesterday.

"It is frustrating," said Paul O'Brien, chairman of the benefits committee of the Irish Association of Pension Funds. "The Government has discussed this since November and we are now seeing this report and the Minister saying 'I am not sure what to do and I am going to put it out to further consultation'.

Irish Insurance Federation chief executive Mike Kemp echoed those sentiments. "We are concerned that there is no indication from the Minister as to if and when these recommendations will actually be implemented."

However, Joyce Brennan, senior consultant at Mercer, said Mr Brennan "is taking the right approach by recognising the need for thorough costing and analysis".

Mr Brennan noted that existing tax reliefs for pensions were costing the Government around €2.7 billion - or roughly the same as the State old age pensions - every year.

He also made clear his preference for the Pensions Board to return in more detail to the issue of mandatory pensions which he believes are a key element if Ireland is to achieve its targets for pension coverage.