Dáil Éireann Debate, Wednesday - 17 December 2014
27. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection the position regarding a pension fund and the role of employers (details supplied); and if she will make a statement on the matter. [48489/14]
View answerDefined Benefit pension schemes in Ireland are set up and maintained by employers on a voluntary basis. There has never been a statutory obligation on employers under Irish law to contribute to their pension scheme. Rather, when a defined benefits scheme is set up, the level of employer and employee contributions is agreed and established in contract in the scheme Trust Deeds and Rules. The Trust Deeds and Rules differ from scheme to scheme, and as with any contractual situation, contain the bounds on the level of obligation of the parties involved.
In the case of the Waterford Crystal Pension Schemes, these schemes were wound up in a situation where both the employer and the scheme were insolvent. As part of the wind-up process the assets in these schemes were distributed to meet the liabilities of the scheme to the extent that the assets were sufficient to meet these liabilities. You will be aware that the Government has approved a set of recommendations from the mediator to settle funding issues arising from the wind up of these schemes.
The costs associated with the mediated settlement will be drawn from the Central Fund. In Budget 2014 the Minister for Finance confirmed the introduction of an additional levy on pension funds at 0.15% for 2014 and 2015 to help fund the Jobs Initiative and to make provision for potential State liabilities emerging from pre-existing or future pension fund difficulties.
