MINISTER FOR Social Protection Éamon Ó Cuív said a new initiative on pension funds would be launched in January.

He said the National Treasury Management Agency would issue bonds to assist in the creation of sovereign annuities, which would be available for purchase by any investor, including pension funds.

Mr Ó Cuív added that the interest rate would be decided in the light of prevailing market conditions.

“I want to emphasise that this is a voluntary initiative and based on proposals from the pensions industry itself,” said Mr Ó Cuív.

“It gives scheme trustees new options to deliver higher yields and improve the funding position of their schemes.”

Introducing the Social Welfare Bill, giving legislative effect to Budget measures, Mr Ó Cuív said he was fully aware of their impact on the living standards of many citizens in the short term.

Labour spokeswoman Roisin Shortall said that cutting basic social welfare rates by €8 per week for the second consecutive year would have a devastating impact on people who relied on the State for income support.

Debate on the Bill resumes today.