Wednesday, 10 July 2013

Questions (75)

John McGuinness

Question:

75. Deputy John McGuinness asked the Minister for Finance his plans to address the issues which have been raised relative to retirement funds such as ARFs and AMRFs and the fact that individuals have lost considerable money which was set aside for their pension funds; and if he will make a statement on the matter. [33693/13]

View answer

Written answers (Question to Finance)

I am advised that there are a small number of pension funds that may not be entitled to compensation under the deposit guarantee scheme, DGS, or the eligible liabilities guarantee scheme, ELG, due to the nature of the products or deposit options in which those account holders invested. It is important to note that at the time the products were offered to customers there was no additional guarantee provided by the State in respect of those products. It was always the case that the ELG scheme covered only those liabilities which were entered into during the issuance window. In relation to the DGS Scheme, I am advised that the DGS Regulations explicitly specify which deposits are excluded from coverage under that Scheme. Deposits held by pension funds and retirement funds fall within the category of excluded deposits, though small self-administered pension schemes are included. The decision to include SSAPs and exclude ARFs, AMRFs and other pension funds/instruments was based on the fact that SSAPs are usually small schemes administered by the member(s) of the scheme whilst ARFs are managed by a qualified fund manager through a credit or investment institution.

There are currently no plans to alter the terms of the Deposit Guarantee Scheme. If customers are concerned about the coverage for their pension fund they can contact either my Department in respect of queries on the ELG Scheme or the Central Bank with queries about the DGS Scheme.