The Irish Minister in charge of pensions policy Mary Hanafin, is currently building up entitlement to 3 public sector pensions - - she remains a teacher - - while the majority of Irish private sector workers have no occupational pension and many of those who have, are facing losses on their pensions. Hanafin when retired, will get the same increases as future ministers and teachers.

The Government plans to launch a new pension scheme designed to protect workers at failing Irish companies.

The Pensions Insolvency Payment Scheme (PIPS) will be aimed at workers and retirees on defined benefit pension schemes should their employer go into liquidation.

Under the plans, pension funds will pay a sum to the Exchequer to cover the cost of pensions for retired members, instead of buying annuities.

Annuities are usually purchased from insurance companies to provide an ongoing source of income for retired workers. Savings will then be put towards the pensions of those workers who have yet to retire, thereby helping to reduce shortfalls.

Minister for Social and Family Affairs, Mary Hanafin, said on Sunday: "The scheme should go some way towards reducing those losses in a way that is cost-neutral to the Exchequer.

"We are in a situation where defined benefit schemes are being wound up and some employees and former employees are ending up with less than they are due. I want to make it easier for people to get more.

"This Government scheme will provide for pensions at a lower cost, leaving more funds available for those who have yet to retire."

The scheme, will be contained in a new pensions bill to be finalised this week, and will be overseen by the National Treasury Management Agency.

The minister also said that there will be changes in the way funds are distributed if a scheme is wound-up with a deficit. Pensioners will continue to get priority for their pensions, but any future pension increases won't be granted until those workers who have also contributed, but have not yet retired, get their share of the benefits.

The bill also proposes making it easier to prosecute employers who don't pass on pension contributions made by employees to the scheme and ensuring they face harsher penalties.

Hanafin said it was unfair that when a defined-benefit scheme was wound up in deficit that “a person who retired yesterday is entitled to his or her full pension – as well as annual increases in that pension – while a person who is due to retire tomorrow may receive only a small proportion of their benefits”.

The minister is currently building up entitlement to 3 public sector pensions and remains a teacher 12 years after becoming a politician.

The Irish Independent reports that two senior ministers who held on to their teaching posts are each clocking up three pensions worth upwards of €140,000 a year in total.

Ministers Micheal Martin and Mary Hanafin will benefit from ministerial, TD and teacher's pensions.

More than 1 million Irish private sector workers do not have an occupational pension.