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Wednesday, 26 Feb 2014

Written Answers Nos. 120-129

Pension Provisions

Questions (120, 121)

Aengus Ó Snodaigh

Question:

120. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection further to Parliamentary Question No. 354 of 18 February 2014, when the ad hoc group on pensions last met; the persons who were in attendance; and the focus of the meeting. [9754/14]

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Aengus Ó Snodaigh

Question:

121. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection further to Parliamentary Question No. 354 of 18 February 2014, if the ad hoc group on pensions will hold an urgent meeting at the earliest opportunity to focus on the crisis in the IASS pension scheme in an effort to ensure the fairest possible resolution to the dispute for all affected and to avoid possible strike action ahead of St. Patrick's Day. [9755/14]

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Written answers

I propose to take Questions Nos. 120 and 121 together.

The ad hoc group on pensions last met on 21 October 2013 to consider broad pension policy issues with a particular focus on the proposals which were subsequently brought forward in the Social Welfare and Pensions (No.2) Bill 2013. The Minster for Finance, the Minister for Jobs Enterprise and Innovation and the Minister for Social Protection attended the meeting of this ad hoc group.

Pension schemes in Ireland are generally set up under trust law. In this regard the trustees of a pension scheme must act in the best interest of all scheme members. The trustees of the scheme must also comply with the requirements of the Pensions Act 1990. The Deputy will appreciate that I cannot comment on the issues arising in a particular scheme. However, I understand that the trustees of the scheme are in discussions with the Pensions Board in an effort to agree a funding proposal to secure the sustainability of the scheme and with the industrial machinery of the State to secure a resolution to the difficulties this issue presents.

Departmental Programmes

Questions (122)

Michael Healy-Rae

Question:

122. Deputy Michael Healy-Rae asked the Minister for Social Protection if she will review the decision of her Department to close the CSP north Kerry older person's home maintenance service based in the north and east Kerry development area (details supplied); and if she will make a statement on the matter. [9758/14]

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Written answers

The community services programme (CSP) is designed to address gaps in service delivery and disadvantage and to ensure that community facilities are utilised. The programme is funded by the Department with day-to-day management of contracts undertaken by Pobal. Some 425 not-for-profit companies and co-operatives shared annual funding of €46m from the programme in 2013. Contract holders must deliver tangible services that are capable of generating non-public revenues from their operations by way of charging fees, sales and/or fundraising and other public funds. The programme is not intended to represent full-funding for any operation.

Each contract holder is responsible for their own budgets, income, financial and other liabilities. Contracts are generally offered on a three-year cycle based on a business plan or similar submitted by the company. Continued funding is subject to satisfactory compliance with the programme’s operational requirements, financial position of the company, continued eligibility of the company and service, progress on delivery of the stated objectives in the business plan, and an assessment of a business plan for the following three year contact cycle. A regular review process is undertaken to ensure compliance with contract obligations, audit issues, continuing capacity of the organisation to manage public funds, the need for and quality of service delivery, sustainability, and value for money.

The company is involved in the provision of a range of services in North Kerry. This particular CSP contract relates to the provision by the company of a low cost maintenance and minor repair service targeted specifically at the older community of North Kerry. The operations were reviewed as part of a re-contracting process for the period 2014-16. The process involves the submission of business plans by the company and a review of performance by Pobal before recommendations are made to the Department for decision. The company had been approved for a funding contribution to employ a full time manager post and four and a half full-time equivalent posts (FTE) plus an operational grant of €5,000 up to end of 2013. The total value was €122,649 pa. The business plan submitted by the company to secure a contract for 2014 to 2016 was considered to be generally weak and raised concerns about the activity delivered for the level of funds granted and the value being obtained. There are also longer-term concerns about the sustainability of the services and its financial structure. The level of output delivered by the company was considered low when compared with similar services.

In the circumstances, the Department considered that the expenditure of public funds could no longer be justified. The company has been advised of the outcome of the review and has been offered an opportunity to seek a review of the decision.

Question No. 123 withdrawn.

Pension Provisions

Questions (124)

Aengus Ó Snodaigh

Question:

124. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection if she will ensure that the pensions council which is to be established to advise on pensions policy includes representation from trade unions, older people's organisations and a representative tasked with advocating for the interests of deferred members. [9801/14]

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Written answers

The Social Welfare and Pensions (Miscellaneous Provisions) Bill 2013 provided for the establishment of a new unincorporated body called the Pensions Council.

The Pensions Council will comprise:

- a chairperson;

- a representative of the Minister for Social Protection;

- the Pensions Regulator;

- a representative of the Central Bank;

- a representative of the Department for Public Expenditure and Reform;

- and up to 8 other members representing the interests of stakeholders with a particular focus on consumer representation.

The 8 positions will be advertised through the Public Appointments System and will be open to people with experience in the pensions and consumer area. I expect that all members of the Council will have the relevant skills, specialist knowledge, experience or expertise to enable them to carry out their functions under the Pensions Act.

Question No. 125 withdrawn.

Jobseeker's Allowance Appeals

Questions (126)

Tom Fleming

Question:

126. Deputy Tom Fleming asked the Minister for Social Protection if she will expedite a jobseeker's allowance appeal in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [9837/14]

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Written answers

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was referred to an Appeals Officer on 19 February 2014, who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.

Pension Provisions

Questions (127)

Patrick Nulty

Question:

127. Deputy Patrick Nulty asked the Minister for Social Protection if she will address the matter raised in correspondence (details supplied) regarding the threat of cuts to Aer Lingus staff pensions; and if she will make a statement on the matter. [9882/14]

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Written answers

The Deputy will appreciate that it is not appropriate for me to comment on matters relating to an individual pension scheme. I am very aware of the serious challenges facing many pension schemes at this time and the efforts being made by both the trustees and the sponsoring employers of these schemes to meet these challenges. The Deputy will be aware that I have introduced a number of legislative changes in recent years to assist both trustees and employers meet these challenges.

The Social Welfare and Pensions (No.2) Act 2013 amended section 50 of the Pensions Act to broaden the options available to the trustees of a pension scheme in any consideration of a restructure of pension scheme benefits. Prior to this change, the trustees of a pension scheme could restructure active and deferred scheme member’s benefits and post retirement increases in pension benefits. The change to section 50 of the Pensions Act extends the categories of benefits which can be considered in a restructure of scheme benefits to include a portion of pensioner benefits. This change essentially provides for the sharing of the risk of scheme underfunding across all scheme members.

Any consideration of a restructure of pension scheme benefits under section 50 of the Pensions Act must comply with the provisions in the Act and with guidance issued by the Pensions Board. This guidance makes provision for the notification of all scheme members in advance of any application to the Pensions Board to restructure scheme benefits. In such circumstances, scheme members will have at least one month to make a submission to the trustees of the scheme in relation to such a proposal. The Pensions Board must be satisfied that all the provisions in the guidance are complied with before the Board will consider issuing a notice to restructure 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 to act in the best interests of all scheme beneficiaries.

In relation to the matter of representation by deferred scheme members in consideration of a change to scheme benefits, this is a matter which needs to be considered in a broader industrial relations context. I have written to my colleague, the Minister for Jobs, Enterprise and Innovation in this regard.

Question No. 128 withdrawn.

Supplementary Welfare Allowance Data

Questions (129)

Aengus Ó Snodaigh

Question:

129. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection the number of persons who have availed of the special dietary supplementary welfare allowance scheme each year for the past five years. [9905/14]

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Written answers

Diet supplement, under the supplementary welfare allowance scheme, is payable to qualifying persons who have been prescribed a special diet as a result of a specified medical condition.

Following the outcome of a review of the costs of healthy eating and specialised diets commissioned by the Department during 2013, the scheme has been closed to new applicants from 1 February 2014. Payment of the supplement will continue to be made to the 6,000 existing recipients for as long as they continue to be entitled to the payment.

The number of persons in receipt of the diet supplement scheme has continued to reduce in recent years and details of recipient numbers for the period 2009 to 2014 is provided in the following tabular statement.

Diet Supplement Recipients 2009 to 2014

Year

Recipients

2009

8,600

2010

8,100

2011

7,600

2012

7,000

2013

6,100

2014

6,000*

*As of 31 January 2014

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