Dáil Éireann Debate, Tuesday - 25 February 2014
395. Deputy Ciara Conway asked the Minister for Social Protection if there is a legal timeframe for trustees to wind up a pension scheme in the event of a company closure; what that time limit is; the penalties that are incurred by going over this timeline; and if she will make a statement on the matter. [9231/14]
View answer397. Deputy Ciara Conway asked the Minister for Social Protection the length of time after a pension scheme closes that members can challenge the decisions of the trustees, or submit queries to the Ombudsman; if there is a statute of limitations on such queries; and if she will make a statement on the matter. [9233/14]
View answerI propose to take Questions Nos. 395 and 397 together.
The trust deed and rules of the scheme will usually set down the various circumstances in which a scheme can be wound up. Typically, these would include the employer:
- notifying the trustees of its intention to stop contributions to the scheme
- failing to make contributions due to the scheme within a specified period
- going into liquidation
- being bought by another company and that company deciding not to continue to operate the previous employer’s pension scheme.
Any decision by the trustees to wind up a scheme would be supported by the trust deed and rules of the scheme which I understand can be challenged under trust law.
In the event of a decision to wind up a pension scheme the trustees of the scheme are required to notify the Pensions Board, all members and the authorised trade unions of their decision as soon as possible but in any event not later than 12 weeks after the decision is made. Where a trustee fails to meet his/her obligations in this regard the trustee will be guilty of an offence under the Pensions Act.
Section 48 of the Pensions Act set out the order under which the assets of a pension scheme must be distributed in the event of the wind up of a scheme. The Pensions Act does not set down a timeframe for the wind up of a scheme.
The Pensions Ombudsman can investigate and determine matters of maladministration by those responsible for the management of a pension scheme. He can also investigate disputes of fact or law with trustees or managers or employers concerning a pension scheme. The time limits within which a complaint or dispute must be brought to the Pensions Ombudsman are six years from the date of the act giving rise to the complaint or dispute, or three years from the date on which the person became aware or ought to have become aware of the act giving rise to the complaint or dispute, whichever is the earlier, or such longer period as the Pensions Ombudsman may allow if it appears to him that there are reasonable grounds for extending the period and it would be just and reasonable to do so.
