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Pension Provisions

Dáil Éireann Debate, Wednesday - 30 November 2011

Wednesday, 30 November 2011

Questions (97, 98)

Michael McCarthy

Question:

93 Deputy Michael McCarthy asked the Minister for Social Protection the most appropriate course of action for community employment supervisors and assistant supervisors following the decision by her not to proceed with a pension scheme for that cohort of employees despite Labour Court recommendations; and if she will make a statement on the matter. [37773/11]

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Michael McCarthy

Question:

95 Deputy Michael McCarthy asked the Minister for Social Protection her position on the provision of a pension scheme for community employment supervisors and assistant supervisors; if a new template is being drawn up by her in view of another Department’s decision to reject this group’s claim for a pension scheme on 19 October; and if she will make a statement on the matter. [37774/11]

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Written answers

I propose to take Questions Nos. 93 and 95 together.

The Labour Court recommended in July 2008 that an agreed pension scheme should be introduced for community employment (CE) scheme supervisors and assistant supervisors, and that such a scheme should be adequately funded by FÁS. Notwithstanding the positions of the Department in rejecting that liability for these costs falls to be met from public funds, this matter has been the subject of discussions between the Department of Public Expenditure and Reform, my Department, and the unions representing CE supervisors. In the event that funding was required from FÁS, the implementation of the claim is not considered sustainable in light of the current and ongoing fiscal environment and the requirement to contain and reduce public expenditure. The costs of the introduction of any scheme are likely to be of the order of €3m per annum with retrospective costs of the order of at least €30m.

The Deputy should also note that FÁS is not the employer of CE supervisors and such employees are not public servants. Neither was FÁS a party to the Labour Court dispute on this matter. The responsibilities of the sponsoring organisations and the individuals concerned must also be recognised when considering pension provision arrangements.

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