Vol. 419 No. 1
179 Mr. Ferris asked the Minister for Social Welfare if he will make provision for the restoration of pension rights to employees of State and semi-State companies who forfeited these rights by changing employment prior to the implementation of the Pensions Act, 1990; whether they are currently members of pensions schemes; and if he will make a statement on the matter.
Preservation of benefits under the Pensions Act only applies to pensionable service after 1 January 1991. Under the provisions of Part III of the Act, employees who leave a scheme before normal pension age and who have five years membership of the scheme, of which at least two years is after 1 January 1991, are entitled to have benefits in respect of service from 1 January, 1991 preserved within the scheme. Alternatively, they may opt to have the actuarial value of the benefit transferred to the scheme of their new employer or to a life office annuity contract.
However these provisions do not affect pre-1991 service. The member's entitlement in respect of such service is governed by the rules of the particular scheme involved.
In relation to State and semi-State pension schemes generally, a transfer network operates within these schemes which allows persons moving between such schemes to have their pension rights transferred. Most schemes within the State and semi-State sectors also allow for the preservation of benefits where a person moves from such employment to take up a position in the private sector.
The Pensions Board have been asked to examine the issue of having preservation of benefits requirements apply to periods of service before 1 January, 1991 with a view to encouraging employers to provide for preservation in respect of past service rights, where this is the wish of members. At this stage I do not envisage such preservation becoming mandatory either for employers or for members, a number of whom wish to retain the option of obtaining refunds of contributions in respect of pre-1991 service.
The matter will be considered further when the Pensions Board have completed their examination of the issue.
