Defined Benefit Pension Schemes

Dáil Éireann Debate, Tuesday - 28 January 2014

Tuesday, 28 January 2014

Questions (388)

Willie O'Dea

Question:

388. Deputy Willie O'Dea asked the Minister for Social Protection the number of potential double insolvency pension schemes foreseen in the coming year by her Department; when guidelines will be issued to trustees of defined benefit schemes outlining how best to utilise the new legislative provisions as contained in the Social Welfare and Pensions (No. 2) Bill 2013; if there are any defined benefit pension schemes which still have not submitted proposals to the Pensions Board; and if she will make a statement on the matter. [3855/14]

Written answers

Minister for Social Protection

It is not possible to predict the number of double insolvencies. However, I can say that the number of double insolvencies arising in the last ten years is believed to be less than ten.

The Social Welfare and Pensions (No.2) Act provides for the issue of guidance in relation to the drawdown of State funding in the event of the wind up of an underfunded scheme, where the employer is insolvent and the scheme does not have sufficient resources to meet 50% of scheme benefits or benefits up to a maximum of €12,000. This guidance and the consequential changes to existing guidance impacted by the provisions in the Social Welfare and Pensions (No. 2) Act is being progressed.

Some 10% of defined benefit pension schemes have not yet submitted a funding proposal to the Pensions Board. The Board is in dialogue with each of the schemes involved.