Vol. 544 No. 3
381 Mr. Bell asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that there are many pension and superannuation schemes in operation which do not provide for index linking; his views on whether retiring and retired workers in this category are discriminated against; his plans to amend this matter by legislation or regulation; and if he will make a statement on the matter. [28544/01]
At the outset, I would stress that in considering any issue relating to occupational pension schemes, one has to take into account that such schemes are voluntary arrangements between an employer and employees.
However, I am anxious that, where such occupational schemes exist, the question of indexation is considered and the members of the scheme are made aware of the results of this review. In the Pensions (Amendment) Bill, 2001, which is currently before the Seanad, I have set out proposals to deal with this matter.
For schemes that do not provide indexation, the Bill proposes a mandatory review by the trustees of the scheme in relation to the possibility of indexing pensions in line with the consumer price index, CPT, or 4%, whichever is the lower. The outcome of this review and the employers, response, where required by the rules of the scheme, must be published in the annual report. I believe that this is the best approach to ensuring that proper consideration is given to the viability of the pension industry payments in line with the consumer price index.
