asked the Minister for Transport and Power if he will state the text of the Bord na Móna amended superannuation scheme effective from 4th June, 1970, as approved by his Department in advance of the making of the statutory instrument.
Written Answers. - Bord na Móna Superannuation Scheme.
151.
Bord na Móna, in accordance with the provisions of the Turf Development Act, 1953 submitted to me a draft scheme to amend the Bord na Móna regular works employees superannuation scheme.
The improved benefits proposed in the amending scheme had been agreed between Bord na Móna and the trade unions and I agreed to their implementation with effect from 4th June, 1970. Subsequently, the trade unions sought a number of further improvements to the draft scheme and these are still under discussion between all the parties concerned.
Following are the details of the draft amending superannuation scheme as submitted to me by Bord na Móna:
Draft Scheme
Bord na Móna in exercise of the powers conferred on it by section 6 of the Turf Development Act, 1953 (No. 19 of 1953) hereby make the following scheme:
1. (1) This scheme may be cited as the Turf Development Act, 1953 (Regular Works Employees) Superannuation (Amendment) (No. 2) Scheme, 1970;
(2) The Turf Development Act, 1953 (Regular Works Employees) Superannuation Scheme, 1963, is hereby amended as follows:
Definitions
2. Existing definitions numbered (10), (14), (20) and (23) shall be deleted and substituted by the following:
(10) "Contribution year" means the period covered by the board's accounting year and shall be effective from the 27th March, 1969.
(14) "Failure of Health" means such a failure of health, mental, or physical as in the opinion of the Board acting on the advice of a medical practitioner nominated by the Board in that behalf permanently incapacitates a member from doing his ordinary work in the service of the Board, provided that where the Committee so requires, the failure of health shall be determined by a medical referee, agreed upon between the Board and the Committee in each case.
(20) "Pension" means the annual pension computed as shown in paragraph (1) of Regulation 24 of these regulations.
(23) "Contribution wages" means the yearly remuneration of a member by reference to which the contributions under the Scheme are computed in accordance with the Regulations.
New definitions numbered (39) and (40) shall be inserted and shall read as follows:
(39) (a) "Retiring wage" will be taken as the actual earnings received by a member in his last year of service, or the average of his earnings in the last three years, if better, subject to a maximum of the yearly equivalent of his basic wage rate (or general time rate, if appropriate) increased by 30 per cent.
(b) The wage by reference to which any pension awarded to a member is calculated under this Scheme shall be the member's retiring wage less twice the annual equivalent of the old age (contributory) pension payable in respect of a single man at the date of the member's retirement.
(40) A member to whom Regulation 18 (4) applies shall be known as an insured member. Reference in the regulations to a member shall include reference to an insured member save where otherwise indicated by the context.
1. Superannuation Fund
Regulation 6 shall be amended by adding the following paragraph:
"or (c) such other investments as may for the time being be authorised by the Minister with the concurrence of the Minister for Finance".
2. Membership
Regulation 18 shall be amended by adding the following paragraphs:
(18) (1) (d) Notwithstanding the terms of paragraphs (1) (a), (b) and (c) it is provided that a person transferring to the service of the Board in accordance with Section 4 of the Superannuation and Pensions Act 1963 may join the scheme on the date on which he takes up duty.
(18) (4) In the case of a member who is compulsorily insured under the Social Welfare Acts for benefits including contributory Old Age Pension at the time of entry to the scheme or at any time thereafter continuation of membership of the scheme is conditional on his becoming a voluntary contributor under the Social Welfare Acts, if eligible, should he cease to be compulsorily insured under those Acts.
(18) (5) Every entrant to the scheme will be required to authorise the Board to make such arrangements as the Board may require to ensure payment of the appropriate voluntary contribution under the Social Welfare Acts, including any contribution payable after retirement on age or ill-health with a pension under this scheme.
3. Contributions
Regulation 22 shall be amended by deleting Regulations 22 (4) and (5) and substituting the following:
22 (4) Contributions at the rate of 4.2 per cent of contribution wages shall be payable by members weekly or otherwise depending upon the manner in which the members are paid. The contributions of members shall be deducted at source by the Board from the remuneration of the members and the amount so deducted shall be paid forthwith into the Fund.
Existing Regulations 22 (6), (7), (8) and (9) shall be renumbered 22 (5), (6), (7) and (8).
The term "pensionable wages" in Regulations 22 (1), (2), (5) and (6) shall be deleted and substituted by the term "contribution wages".
4. Reckoning of Service
Regulation 23 shall be amended by adding the following paragraphs:
23 (1) (d) Fractions of a year will be disregarded for the purpose of computing benefits, but a member may remain in membership beyond the normal retiring age of 65 years for a period of not more than three calendar months if his services are retained by the Board, and if by so remaining an additional year's pensionable service may be completed.
23 (3) (a) Service with the Board shall be deemed to include such amount of service as may be reckonable for the purposes of the Local Government (Superannuation) Act, 1956 (No. 10 of 1956).
(b) Where a Superannuation award under the Local Government (Superannuation) Act, 1956, is made by a local authority to any person and in determining the amount of such award, any period of pensionable service with the Board has been reckoned, the Committee of the Superannuation Scheme shall arrange to make an appropriate refund to the local authority under Section 57 (1) of that Act.
5. Pension Benefits
Regulation 24 shall be deleted and the following regulation substituted:
24 (1) A member who retires from the service of the Board on attaining the age of 65 years or the age specified in Regulation 23 (1) (d) where appropriate or a member who retires with the consent of the Board before attaining the age of 65 years on account of failure of health and having completed ten years pensionable service shall be eligible to receive a pension of an amount per annum calculated at the rate of 1/80th (one eightieth) of his retiring wage as defined in Regulation 2 (39) (b) for each year of his pensionable service subject to a maximum of 40/80ths (forty eightieths), or £3,000 whichever is the lower, together with a gratuity equal to 1/30th (one thirtieth) of his retiring wage as defined in Regulation 2 (39) (a) for each year of pensionable service, subject to a maximum of 30/30ths (thirty thirtieths).
(2) A member who retires on account of failure of health and who has completed less than ten years service, shall receive in lieu of an annuity a gratuity equal to 1/12th (one twelfth) of his retiring wage for each year of pensionable service.
(3) (a) The Committee may at its discretion pay a supplementary pension to an insured member who at the date of his retirement,
(i) was compulsorily insured under the Social Welfare Acts for benefits including contributory Old Age Pension, or
(ii) was a voluntary contributor under the Social Welfare Acts for benefits including Old Age Pension
(b) The sum of the supplementary pension and the Social Welfare Benefit or pension (single rate) payable to such insured member shall when added together not exceed the amount of the old age contributory pension (single rate).
(c) A supplementary pension shall not be paid to any person who has failed to become or to continue as a voluntary contributor under the Social Welfare Acts whenever he was eligible to do so after the date of his entry to this Scheme.
(4) The pensions of those who retired prior to the 4th June 1970 shall be recalculated in accordance with paragraph (1) of this Regulation and the revised rate of pension will be paid with effect from that date.
Regulation 25
Regulation 25 shall be deleted.
Retirement due to Failure of Health
Regulation 26 shall be amended by deleting Regulation 26 (1) and renumbering Regulations 26 (2) and (3) (a) (b) and (c) as follows:
26 (1) and 26 (2) (a), (b) and (c).
The words "the contributions repaid" in Regulation 26 (2) shall be deleted and substituted by the words "any gratuity awarded".
Death Benefit
Regulation 27 shall be amended by deleting Regulation 27 (1) and substituting the following:
27 (1) If a contributing member dies whilst in the service of the Board and he has completed five years service there shall be paid to or for the benefit of his dependent relatives, or any of them as the Committee in their absolute discretion may determine whichever of the following amounts is the greater:
(a) A gratuity equal to his retiring wage.
(b) A sum equivalent to the present value of the payment for a period of 5 years of the pension (if any), to which the member would have been entitled if he had retired on account of failure of health on the day of his death, in addition to the gratuity to which he would have been so entitled. Provided, however, that the whole or part of the value of the benefit payable under this regulation shall, where necessary, be given by way of non-commutable and non-assignable pension or annuity for any dependent relative of the member so as to secure that the aggregate value of all benefits given otherwise than by way of such pension or annuity as aforesaid on the death of the member, under all retirement benefits schemes subsisting in connection with the Board shall not exceed whichever is the greatest of the following:
(i) the sum of one thousand pounds.
(ii) An amount equal to the member's final remuneration.
(iii) An amount equal to one-thirtieth of the member's final remuneration multiplied by the number of the member's years of service with the Board or by forty-five whichever is the lesser.
(iv) An amount equal to the aggregate of the sums contributed by the member under the schemes referred to above, together with compound interest on those sums at the rate of 3 per cent per annum or
(v) Such larger amounts as the Revenue Commissioners may allow.
For the purpose of this proviso, the definition of "Final Remuneration" contained in subsection (1) of Section 226 of the Income Tax Act, 1967, shall apply.
Regulation 27 (2) shall be amended by deleting the words "or Regulation 26".
Regulation 27 (5) shall be amended by adding the following additional paragraph:
Provided further that in the event of there being no dependent relative, the Committee in their absolute discretion may, if they see fit, authorise the Trustees to pay the amount involved to the legal personal representatives of the member for the benefit of the member's next-of-kin or any of them and the receipt of any such person or persons for the payment shall be a good discharge to the Trustees for every such payment.
9. Regulation 29
Regulation 29 shall be deleted.
10. Regulation 34
Regulation 34 (1) shall be deleted and the following regulation substituted:
34 (1) (a) A member who has not less than 20 years pensionable service and whose membership ceases because of redundancy and who is not otherwise eligible to receive a pension or gratuity under this Scheme shall be eligible at his election to receive either:
(i) the return of all the contributions paid by him to the Fund with compound interest thereon at the rate of 3 per cent per annum or
(ii) a pension and gratuity of such amount as shall be determined by the Actuary having regard to the provisions of this Scheme and to the member's pensionable service on the date his employment terminated but not exceeding the amount that would have been payable if the member had retired on ill-health on that date, or the pension equivalent of the total contributions then standing to his credit in the Fund together with compound interest thereon at 3 per cent per annum, whichever is the lesser, provided that the said determination by the Actuary shall be final and conclusive and provided further that the pension and gratuity, or the pension equivalent of the total contributions as aforesaid shall not be payable before the member has reached 65 years of age, except where it is proved to the satisfaction of the Board and the Committee that the member is no longer fit for work because of permanent infirmity of mind or body.
A pension payable under paragraph (a) (ii) of this Regulation shall be payable during the lifetime of the pensioner to the date of his death provided that in the event of the pensioner dying within five years of the date on which payment of the pension commences payment of his pension to his dependants shall continue to be made until the completion of the balance of the five years from the said date of commencement of pension. Provided further that if requested by the legal personal representatives or dependent relatives so to do, the Committee may if they think fit commute the balance so payable for a single payment of such amount as the Actuary shall certify to be fair and reasonable and the certificate of the Actuary shall be final and conclusive. Provided also that in the event of there being no dependent relative the Committee in their absolute discretion may if they see fit authorise the Trustees to pay the commuted sum as aforesaid to the legal personal representatives of the member for the benefit of the member's next-of-kin or any of them and the receipt of any such person or persons for the payment shall be a good discharge to the Trustees for every such payment.
(b) If a member other than a member who is in receipt of an ill-health retirement pension in accordance with Regulation 34 (1) (a) (ii) (who elects to receive the benefits provided under paragraph (a) (ii) of this Regulation) dies before reaching 65 years of age, his dependants shall thereupon be eligible to receive a lump sum equivalent to the total of contributions paid by the deceased member to the Fund with compound interest thereon at the rate of 3 per cent per annum. Provided that in the event of there being no dependent relative the Committee in their absolute discretion may if they see fit authorise the Trustees to pay the said amount to the legal personal representatives of the deceased member for the benefit of his next-of-kin, or any of them, and the receipt of any such person or persons for the payment shall be a good discharge to the Trustees for every such payment.
(c) The Committee shall apply the benefits payable to dependants under this regulation in the manner prescribed by Regulation 27 (3) and (4) of this Scheme.
(d) A member who has less than 20 years pensionable service and whose membership ceases because of redundancy and who is not otherwise eligible to receive a pension or gratuity under this Scheme shall have all his contributions returned to him with compound interest thereon at the rate of 3 per cent per annum.
Regulation 34
Regulation 34 shall be amended by adding the following paragraph:
(4) If a member dies while serving before he has completed five years pensionable service his contributions shall be applied for the benefit of his widow and other dependants or any of them as the Committee in their absolute discretion may determine and in the event of there being no dependent relative they may if they see fit authorise the Trustees to pay it to legal personal representatives of the member for the benefit of the member's next-of-kin or any of them and the receipt of any such person or persons shall be a good discharge to the Trustees.
11. Transfer of Membership
Regulation 36 (3) shall be amended by deleting the following words in Regulation 36 (3) (b) "and having regard particularly to the provisions of paragraph (c), paragraph (d) and paragraph (e) of this subsection" and deleting also Regulations 36 (3) (c), (d) and (e).
Regulation 36 (3) (f) shall be renumbered 36 (3) (c).
12. Miscellaneous
Death Duty
Regulation 40 shall be deleted and the following regulation substituted:
40. In any case where the payment of benefit involves liability to Death Duty on the part of the Trustees, the Trustee shall be entitled to deduct a sum equivalent to such Duty or any part thereof on making such payment.
Hearing of Applications and Appeals
Regulation 44 (1) shall be amended by deleting the term "pensionable wages" and substituting the term "contribution wages".
13. Pension Increases
A new regulation shall be added as follows:
46 (1) The Committee may, with the consent of the Board, grant such increases in such pensions payable under this Scheme as may be authorised from time to time by the Minister with the consent of the Minister for Finance;
(2) Any increase granted by virtue of paragraph (1) of this Regulation shall be paid out of the Fund.
Except where otherwise stated all of the Amended Regulations shall be deemed to have come into force and effect as from the 4th day of June, 1970.