Finian McGrath
Question:626. Deputy Finian McGrath asked the Minister for Social Protection if she will support a matter regarding a pension in respect of a person (details supplied) [37655/13]
View answerWednesday, 18 September 2013
Questions (626)
Written answers
The Deputy will appreciate that I cannot comment on issues relating to a particular pension scheme. The Pensions Board supervises the regulation of individual schemes in accordance with the Pensions Act. However, the Pensions Act does not regulate how company accounts should reflect pension arrangements for its employees.
In general terms, I can advise that funded defined benefit pension schemes are required to satisfy the Funding Standard as set out in the Pensions Act 1990, as amended. This is a wind up standard which means that a funded defined benefit pension scheme is required to maintain sufficient assets to meet the liabilities of the scheme in the event of the wind up of the scheme. Where a scheme fails to satisfy the Funding Standard, the scheme is required to submit a funding proposal to the Pensions Board setting out how it is proposed to restore scheme funding. I understand that the Pensions Board has recently agreed a funding proposal for the pension scheme in question.
I amended the Pensions Act in 2012 to require funded defined benefit pension scheme to hold additional funding in the form of a risk reserve in order to provide some protection for scheme members against future volatility in financial markets. This requirement will apply in a gradual way from 2016. I also amended the Pensions Act this year to provide the Pensions Board with the power to wind up a pension scheme. This power can only be exercised where a scheme is underfunded and the trustees and the employer are not in a position to adopt a funding proposal or where the trustees of a scheme fail to comply with a direction from the Pensions Board to restructure scheme benefits.
My objectives with regard to regulation are to ensure that measures are in place to protect the pension rights of scheme beneficiaries.