"We would be seriously concerned that the introduction of a mandatory system would distort the current system and lead to reductions in benefits in sectors that are traditionally strong, " Jerry Moriarty, director of policy for the IAPF, told the Sunday Tribune. "We believe it is better to build up the sectors that need it and not in any way knock down the good sectors."

The IAPF fears that a mandatory system - even one with an "opt out" for workers who would prefer a different arrangement . . . would validate a "lowest common denominator" for contribution levels and actually reduce retirement savings in sectors such as financial services, where pension coverage is already relatively generous.

This has happened in Australia, according to the IAPF, where employers now contribute only the minimum 9% following the introduction of a mandatory system in 2001. The Netherlands, by contrast, has achieved near 100% coverage using a non-compulsory sector-by-sector approach.

The one example in Ireland of an industry-wide pension scheme is the Construction Workers Pension Scheme, which has the largest membership of any scheme in the private sector.

The IAPF believes such schemes succeed because they allow for solutions to sector-specific problems.

The hospitality industry, for instance, has very low pensions penetration due to high staff turnover. In a sectorwide scheme, hospitality workers could transport their benefits from job to job within the industry, said Moriarty.

He acknowledged that this would require a high level of inter-union cooperation, but said this could be achieved with partnership.

The IAPF is lobbying for a simplified pensions system in Ireland rather than a radical overhaul, Moriarty said.

"We have a good system in place that we can build on. We have the time because the population is not aging that fast."

A survey published by the IAPF last week found that three-quarters of services industry workers did not understand the tax incentives attaching to pensions in Ireland. Nine out of 10 respondents favoured a simpler SSIA-type system with governmentguaranteed matching funds.

The survey showed an even split between those who approved and and those who disapproved of compulsory pensions, but with much stronger sentiment on the disapproval side.