Vol. 515 No. 1
196 Mrs. Owen asked the Minister for Social, Community and Family Affairs if he will guarantee the solvency of pension schemes which may be threatened by a statutory revaluation of all pre-1991 service; and if he will make a statement on the matter. [5572/00]
In the report on the national pensions policy initiative, the Pensions Board regarded the extension of existing preservation of benefits requirements, to pre-1991 service as desirable and recommended that preservation of benefits for pre-1991 service should be introduced by 1 January 2001, revaluation of such benefits by 1 January 2006 and that funding standards in respect of these should be fully met by 2011.
The pattern for the introduction of preservation and revaluation of pre-1991 service is similar to that adopted under the Pensions Act, 1990, which provides for the preservation and revaluation of post 1991 service.
In recognition of the fact that it may take some time for schemes to have fully funded the extended preserved and revalued benefits, schemes will not have to fully fund for these benefits until 1 January 2011.
It is proposed to give effect to the board's recommendation in the new pensions Bill which will be published during the summer. This will mean that employees leaving schemes after 1 January 2001 will have a statutory right to the preservation, and revaluation from 1 January 2006, of benefits earned in respect of pre-1991 service.
I am satisfied that in not extending the recommendation to all pre-1991 service, and in recommending a ten year period to achieve funding of the increased costs, the board struck a fair balance between the rights of pension scheme members and the potential solvency implications of placing additional and unplanned costs on schemes.
