Pension Provisions

Dáil Éireann Debate, Wednesday - 6 June 2012

Wednesday, 6 June 2012

Questions (253, 254)

Terence Flanagan

Question:

243 Deputy Terence Flanagan asked the Minister for Public Expenditure and Reform in view of the fact that there is currently no pension solvency protection for workers, if there is a possibility that responsibility for pension deficits will be passed to the new employers in charge of State assets — leaving them with the decision on whether or not to make up the shortfall or cut the benefits of the members; and if he will make a statement on the matter. [26896/12]

Terence Flanagan

Question:

244 Deputy Terence Flanagan asked the Minister for Public Expenditure and Reform the likely impact of pension deficits on the sale of State assets and indicate if the cost of rectifying these deficits will be deducted from the sale price prior to the proceeds being divided up between debt repayment and stimulus measures, or if they will be dealt with before being put up for sale; and if he will make a statement on the matter. [26897/12]

Written answers

Minister for Public Expenditure and Reform (Deputy Brendan Howlin)

I propose to take Questions Nos. 243 and 244 together.

The inter-departmental Steering Groups established in respect of each of the State companies listed in the asset disposals programme are taking account of, inter alia, the possible impact of pension deficits on the outcomes of the programme. However, the State is not liable for pension fund deficits arising in commercial state companies. Responsibility for addressing any funding difficulties rests with the trustees of the schemes, the members of the schemes and the companies themselves. I should also point out that these schemes have to meet the minimum funding standard set down by the Pensions Board. As regards the funding standard and its application to individual pension funds or the question of pension solvency protection, these are matters for my colleague the Minister for Social Protection.