Dáil Éireann debate -
Thursday, 29 Jun 1995

Vol. 455 No. 3

Written Answers - Occupational Pension Schemes.

Noel Ahern

Question:

101 Mr. N. Ahern asked the Minister for Social Welfare if his attention has been drawn to the practice of some private companies (details supplied) with occupational pension schemes deducting the social welfare or old age pension equivalent from their pension payments, quoting some social welfare Act in the early 1970s as their authority; if he will make a statement on the legality of the matter; if he will clarify the legal provision and the logic and spirit of the provision at the time; and if it has ever been tested in a court of law. [12114/95]

Minister for Social Welfare (Proinsias De Rossa)

An occupational pension scheme is a voluntary arrangement organised by an employer to provide pensions and/or other benefits to one or more employees on retirement or to their surviving dependants on death.

There is no legal requirement on employers to provide pension benefits for employees under an occupational pension scheme. Many defined benefit pension schemes are integrated with the old age contributory pension where allowance is made for the basic social insurance pension payable to a fully qualified single contributor.

The Pensions Act, 1990 provides for the regulation of occupational pension schemes. I presume the Act to which the Deputy is referring in his question is the Finance Act of 1972 which lays down the conditions for tax relief for pension schemes. Any questions in relation to the provisions of that Act should be addressed to my colleague the Minister for Finance.