The Irish Association of Pension Funds (IAPF) and the Society of Actuaries in Ireland made a joint sovereign annuity proposal to the Government during the summer. The proposal involves the investment of at least €10 billion in Irish Government Bonds allowing defined benefit schemes to lower their deficits and to set aside less money to cover their liabilities in the event of a scheme winding up. The State would underwrite a national annuity bond, ‘a sovereign annuity’ at no extra cost to the State. The joint proposal suggests that commercial insurers would manufacture and sell the sovereign annuity that would be invested in and priced off Irish sovereign bonds. The advantage of this is that the new annuities would be an acceptable alternative to conventional annuities for the purposes of the Minimum Funding Standard and for buying out pensioner liabilities for both ongoing schemes and schemes in wind-up.