Finian McGrath
Question:135. Deputy Finian McGrath asked the Minister for Social Protection her views on correspondence (details supplied) regarding pensions. [54685/13]
View answerWednesday, 18 December 2013
Questions (135, 136)
Finian McGrath
Question:136. Deputy Finian McGrath asked the Minister for Social Protection her views on correspondence (details supplied) regarding a pension issue. [54686/13]
View answerWritten answers
I propose to take Questions Nos. 135 and 136 together.
You will appreciate that it is not appropriate for me to comment on matters relating to an individual pension scheme.
The Social Welfare and Pensions Act 2009 broadened the options available to the trustees of a pension scheme in the event of the restructure of scheme benefits in include the benefits of deferred scheme member and post retirement increases in such benefits. Prior to the 2009 Act, only the benefits of active scheme members could be considered in a restructure of scheme benefits. The Social Welfare and Pensions (No. 2) Bill further extends the options available to trustees of a scheme to include a portion of benefits payable to pensioners. It essentially provides for the sharing of the risk of scheme underfunding across all scheme members. However, the legislation restricts the extent to which pensioner benefits can be restructured as it is considered that this category of beneficiary has less potential to respond to a restructure of scheme benefits.
The issue of how these changes might be applied will be a matter for the trustees of the scheme who are required under trust law of act in the best interest of all scheme beneficiaries.
Any consideration of a restructure of pension scheme benefits must comply with the provisions in the Pensions Act and with guidance issued by the Pensions Board. The Pensions Board must be satisfied that these provisions have been complied with before the Board will consider issuing a notice to restructure scheme benefits.