Dáil Éireann Debate, Thursday - 23 October 2014
51. Deputy Róisín Shortall asked the Tánaiste and Minister for Social Protection her plans to ensure that a deficit in the pension scheme of a solvent company is treated as a debt on that company; and if she will make a statement on the matter. [40820/14]
View answerOccupational Pension schemes are generally set up under trust and are maintained by the employer on a voluntary basis. The trust deeds and rules of a scheme differ from scheme to scheme, and as with any contractual situation, reflect the level of obligation of the parties involved. While the Pensions Act provides a framework for the regulation and supervision of occupational pension schemes, it does not impose any obligation on an employer to fund scheme benefits.
Notwithstanding this, and though the outcome of previous consideration of this issue recommended against introducing a statutory obligation on the employer, very serious consideration was given to including such an obligation on the employer in the Social Welfare and Pension (No. 2) Bill 2014. However, given the uncertainties as to the overall impact and potential for unintended consequences of applying debt on the employer selectively or otherwise, it was decided not to proceed with this measure.
