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Defined Benefit Pension Schemes

Dáil Éireann Debate, Thursday - 28 November 2013

Thursday, 28 November 2013

Questions (23, 30)

Thomas Pringle

Question:

23. Deputy Thomas Pringle asked the Minister for Social Protection the number of defined pension schemes that are currently in deficit; and if she will make a statement on the matter. [50840/13]

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Thomas Pringle

Question:

30. Deputy Thomas Pringle asked the Minister for Social Protection the number of pensioners on defined pension schemes of less than €12,000 per annum, between €12,000 and €60,000 per annum; and the number of pensioners on defined pension schemes over €60,000 per annum. [50839/13]

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Written answers

I propose to take Questions Nos. 23 and 30 together.

The Pensions Act provides for a Funding Standard which applies to funded defined benefit pension schemes. This Standard requires defined benefit pension schemes to maintain sufficient resources to meet the liabilities of the scheme in the event of the wind up of the schemes. Where a scheme fails to satisfy the Funding Standard the trustees are required to submit a funding proposal to the Pensions Board outlining plans to restore scheme funding.

At the moment there are 820 schemes that are subject to the requirements of the Funding Standard and of these schemes, 50% approximately are in deficit. The majority of the schemes in deficit have submitted funding proposals to the Pensions Board to restore scheme funding. The Pensions Board is in contact with all schemes to ensure compliance with the Funding Standard. Where schemes that are in deficit have failed to submit a funding proposal the Pensions Board is assessing on a case by case basis whether to make use of its powers under the Pensions Act. These powers include prosecution of the trustees of the scheme for non-compliance, issuing unilateral direction under section 50 of the Pensions Act to restructure scheme benefits or ultimately directing the trustees to wind up the scheme.

I am not in a position to provide the full information you are seeking in relation to occupational pensions in the private sector. However, an analysis of sample data in relation to these schemes shows that 56% of pensions in payment are under €12,000, 40% are between €12,000 and €60,000 and 4% are over €100,000.

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