The recent rulings of the European Court of Justice (ECJ) on the Insolvency Directive (2008/94) has implications for any defined benefit pension scheme that has wound up after the date of the ECJ ruling in the UK Robins case on 25 January 2007 where on the date of the wind up both the scheme and the employer is insolvent (double insolvency).
The Social Welfare and Pensions (No.2) Act 2013 amended the Pensions Act to address double insolvencies occurring after 25 December 2013. No claim has been made in respect of any double insolvencies occurring since the enactment of the 2013 legislation.
The Social Welfare and Pensions Act 2009 provided for the establishment by the Minister for Finance of a Pensions Insolvency Payments scheme (PIPS) to provide for the payment of pensions, in the event of the wind up of a pension scheme where both the employer and the scheme are insolvent, at less cost than through traditional annuities, thereby making more scheme assets available for the pensions of those yet to retire.
Application for pension payments under this scheme would give an indication of the number of double insolvencies arising in the period since the ECJ ruling in the Robins case and which may make a claim against the State. The following table lists the schemes which have applied to the Pensions Authority for certification as an eligible scheme for payment under PIPs.
Application for Pensions Insolvency Payments Scheme
Date Wind up
|
Employer
|
Pensioners
|
Actives
|
Deferred
|
29/06/12
|
Protim Abrasives Ltd.
|
17
|
0
|
45
|
19/07/12
|
Glencullen Holdings Ltd.
|
18
|
17
|
71
|
01/12/10
|
McCormick MacNaughton Ltd.
|
3
|
8
|
12
|
31/03/12
|
BHT Group Ltd.
|
117
|
62
|
259
|
28/06/11
|
McConnell Group Ltd.
|
13
|
0
|
41
|
28/06/11
|
McConnell Group Ltd.
|
3
|
0
|
1
|
31/03/09
|
Waterford Crystal Ltd.
|
162
|
262
|
337
|
31/03/09
|
Waterford Crystal Ltd.
|
475
|
669
|
544
|
30/06/09
|
Waterford Wedgewood PLC
|
22
|
1
|
5
|
15/01/13
|
Curragh Tintawn Carpets
|
40
|
77
|
37
|
22/10/12
|
Co-Operative Poultry Products
|
0
|
0
|
58
|
The Minister for Finance has made provision through the pension levy to meet any liability that might arise in a double insolvency occurring since the ECJ ruling in the Robins case.