Written Answers Nos. 58 - 75
58. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection the pension schemes that became insolvent between 25 January 2007 and 25 December 2013 and which availed of the personal insolvency practitioners service; the size of each in terms of number of members; the name of the sponsoring employer; the scale of the deficit in each at the time of wind-up; and if she will make a statement on the matter. [1049/15]
View answerThe 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 is insolvent to secure the payment of pension at less cost than through traditional annuities, thereby making more scheme assets available for the pensions of those yet to retire.
This is a cost-neutral Exchequer scheme whereby the trustees of a pension scheme transfer the required assets of a scheme to the Exchequer to cover the cost of paying the pensions of retired members. On receipt the required assets, the State take responsibility for the future payment of pensions to the beneficiaries covered by the scheme at the rate agreed by the Minister for Finance in approving the application.
The following table indicates the number of applications received by the Pensions Authority since the scheme was introduced in May 2010.
Application for Pensions Insolvency Payments scheme
|
Date wind Up |
Employer |
Deficit € |
Data Date |
Pensioners |
Actives |
Deferred |
|
29/06/12 |
Protim Abrasives Ltd. |
3,690,000 |
01/05/2010 |
17 |
0 |
45 |
|
19/07/12 |
Glencullen Holdings Ltd |
898,000 |
28/02/2012 |
18 |
17 |
71 |
|
01/12/10 |
McCormick MacNaughton Ltd |
2,960,000 |
31/12/2011 |
3 |
8 |
12 |
|
31/03/12 |
BHT Group Ltd. |
3,750,000 |
31/12/2011 |
117 |
62 |
259 |
|
28/06/11 |
McConnell Group Ltd. |
1,600,000 |
01/03/2011 |
13 |
0 |
41 |
|
28/06/11 |
McConnell Group Ltd. |
1,230,000 |
01/05/2011 |
3 |
0 |
1 |
|
31/03/09 |
Waterford Crystal Ltd. |
38,933,000 |
31/08/2009 |
162 |
262 |
337 |
|
31/03/09 |
Waterford Crystal Ltd. |
58,909,000 |
31/08/2009 |
475 |
669 |
544 |
|
30/06/09 |
Waterford/Wedgewood PLC |
5,537,000 |
30/04/2009 |
22 |
1 |
5 |
|
15/01/2013 |
Curragh Tintawn Carpets |
2,300,000 |
31/12/2011 |
40 |
77 |
37 |
|
22/10/2012 |
Co-Operative Poultry Products |
360,000 |
01/10/2011 |
0 |
0 |
58 |
There are three separate stages to the application process:
1. a scheme‘s trustees must first apply to the Pensions Authority to become certified as an eligible pension scheme as defined under PIPS,
2. if the Pensions Authority approves the certification, the trustees may apply to the Minister for Finance to become a participating pension scheme and qualify for payments under PIPS, and
3. if the Minister for Finance approves the application and the Trustees accept the offer and quote provided by the Minister for Finance, arrangements will be made for the payment of the relevant amount into the Exchequer and for the future payments to relevant pensioners.
The table above shows the number of applications received by the Pensions Authority seeking certification by the Authority as an eligible scheme for consideration by the Minister for Finance for the payment of pensioner benefits under the pension insolvency payments scheme. The table shows the membership of the scheme and the deficit in the scheme at the ‘data date’.
59. Deputy Éamon Ó Cuív asked the Tánaiste and Minister for Social Protection the reason that there is no disregard of €2,539.48 allowed for money received from agri-environmental schemes such as REPS-AEOS in the assessment of disability allowance; the reason there are different rules for the means assessment for schemes such as jobseeker's allowance, farm assist and State pension non-contributory, compared to disability allowance in this regard; her plans to change the law to correct this anomaly; and if she will make a statement on the matter. [1061/15]
View answerWhere a farmer is in receipt of a payment from the agri-environment schemes known as the Rural Environment Protection Scheme (REPS) and AEOS, social welfare legislation provides, for the purpose of certain social welfare schemes, for the disregard of the first €2,539.48 of such payments and the further disregard of half of the remaining balance. The relevant schemes are farm assist, jobseeker’s allowance, state pension non-contributory and pre-retirement allowance. The latter scheme was closed to new entrants from 2007. These arrangements do not apply to other means tested schemes such as one-parent family payment and disability allowance.
A person who is engaged in farming is eligible to apply for farm assist including farmers receiving a REPS/AEOS payment. This scheme was established in 1999 to provide income support for low income farmers and replaced the support previously available known as “smallholders” unemployment assistance. The Department operates a number of other social assistance schemes which provide for various contingencies, such as unemployment, disability, old age, widowhood and single parenthood. As a result of being based on these diverse contingencies, the operation of these schemes necessarily varies in relation to the conditionality, eligibility criteria and the means test that apply. It is considered that the current arrangements relating to the treatment of REPS/AEOS payments to farmers are appropriate given that a dedicated means-tested scheme is available for farmers generally. Accordingly, there are currently no plans to introduce a disregard for monies received from agri-environment schemes in the means assessment for disability allowance or any scheme to which is does not currently apply.
60. Deputy Alan Farrell asked the Tánaiste and Minister for Social Protection the action she will take on a matter (details supplied), where a tenant in receipt of rent supplement did not pass this on to the landlord and, when this was reported to the local social welfare office on at least two occasions, payment to the tenant continued for several months; the further action she will take to more effectively prevent such abuse of the rent supplement system; and if she will make a statement on the matter. [1062/15]
View answerThe payment of Rent Supplement is a matter between the Department and the tenant, subject to the tenant satisfying the eligibility criteria and payment issues directly to the tenant. Where the Department is notified of issues regarding a tenant not passing the Rent Supplement to the landlord, the Department can request the tenant to authorise payment directly to the landlord. This can only be arranged with the tenant’s consent.
Any contract/lease agreement that exists between the tenant and the landlord is a private matter, regardless of whether or not Rent Supplement is in payment. Any difficulties that arise between the two parties are a matter for either party to resolve or to pursue through the Private Residential Tenancies Board (PRTB) or through civil proceedings.
In this case, the landlord contacted the Department on 23 May 2014 to state that the tenant had not paid rent for 4/5 months. Rent Supplement was immediately suspended, pending a review of the case. However, the review did not take place and payment was reinstated on 30 May 2014.
In September 2014, the Department received notification that the client had commenced employment. On foot of this, payment of Rent Supplement was suspended with effect from 3rd of September 2014, pending a review of entitlement. As part of the review, the Department contacted the landlord to ascertain if the matter regarding the non-payment of rent by the tenant had been resolved. The landlord confirmed that he had a PRTB hearing date for either September or October, although he could not confirm the date. As part of the review, the tenant was requested to authorise the Rent Supplement to be paid directly to the landlord. The tenant consented to this request and the Rent Supplement for September and October 2014 issued directly to the landlord’s bank account. The tenancy ceased shortly thereafter.
61. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection her views on State pensioners not having their the basic rates cut; if she will ask the Department of Public Expenditure and Reform to reconsider its plans concerning this issue as this will have dire consequences on the pensioners who are rapidly reaching the poverty line; and if she will make a statement on the matter. [1075/15]
View answerState Pensions account for the single largest bloc of welfare expenditure, and while expenditure on pensions is increasing because of demographic pressures, this is being successfully managed within the overall welfare budget, which continues to fall.
This year, the Department of Social Protection will spend an estimated €6.675 billion on pensions – 34.4% of all welfare expenditure and an increase of €168 million over 2014.
The overall concern of the Government in recent budgets has been to protect the primary weekly social welfare rates where possible. Maintaining the rate of the State pension and other core payments is critical in protecting people from poverty.
The Government has no plans to change this policy, and I have not been presented with any plans from the Minister for Public Expenditure and Reform to reduce the basic rate of the State pension. In fact, the Government increased payments for certain pensioners by increasing the rate of the Living Alone Allowance in Budget 2015 to €9.00.
This increases the maximum personal rate of the State non-contributory pension for a qualified person living alone to €228 per week, and the maximum rate for the contributory pension to €239.30, when both the basic pension and the allowance are taken into account.
The most recent change in the core rate of State pensions was in Budget 2009, when the State pension contributory was increased by 3.1% to €230.30, and the non-contributory pension by 3.3% to €219.00. Both of these are the maximum personal rates, and there are increases for dependant adults which attracted similar increases at that time.
Core pension rates were not reduced in the period since then, despite significant pressures on Exchequer spending, and a period of significant deflation which has protected those increases in real terms from erosion by inflation. This has had the effect of protecting older people from poverty, and all CSO figures show that those over 65 are significantly less likely to be at risk of poverty or deprivation than those aged under 65, whichever measure is used.
The recovery has also allowed us some leeway to increase spending in targeted areas, which is why I was able to restore a partial Christmas bonus last month, benefitting over 575,000 pensioners and 1.23 million welfare recipients in total.
I am aware of an options paper that was prepared by an official in the Department of Public Expenditure & Reform which considered the arguments for a reduction in a number of payment rates, including that of the State pension, and this may be the basis of the question asked by the Deputy. However, that paper stated quite clearly that the views presented in the paper were those of the author alone and do not represent the official views of that Department or the Minister for Public Expenditure and Reform. I am satisfied that this remains the case.
62. Deputy Pat Breen asked the Tánaiste and Minister for Social Protection when a decision will issue on a domiciliary care allowance in respect of a person (details supplied) in County Clare; and if she will make a statement on the matter. [1165/15]
View answerThe person concerned applied for domiciliary care allowance in respect of her child on 17 October 2014. The application was disallowed as it was considered that the child did not meet the eligibility criteria for the allowance. A decision letter issued to the customer on 12 January 2015 advising of the decision.
In the case of an application which is refused on medical grounds the applicant may submit additional information and ask for the decision to be reviewed or they may appeal the decision directly to the Social Welfare Appeals Office within twenty one days.
64. Deputy Michael Creed asked the Tánaiste and Minister for Social Protection if a person (details supplied) in County Cork will be approved for domiciliary care allowance; and if she will make a statement on the matter. [1194/15]
View answerI am advised by the Social Welfare Appeals Office that an Appeals Officer, having fully considered all of the available evidence, has decided to allow the appeal of the person concerned by way of a summary decision. The person concerned has been notified of the Appeals Officer’s decision.
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.
65. Deputy Martin Heydon asked the Tánaiste and Minister for Social Protection if a decision on an illness benefit appeal in respect of a person (details supplied) in County Kildare will be expedited; and if she will make a statement on the matter. [1195/15]
View answerI am advised by the Social Welfare Appeals Office that an Appeals Officer, having fully considered all of the available evidence including that adduced at the oral hearing, has decided to allow the appeal of the person concerned. The person concerned has been notified of the Appeals Officer’s decision.
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.
66. Deputy Mary Lou McDonald asked the Tánaiste and Minister for Social Protection if there are circumstances where a person over the age of 55 years who has been on community employment for three years can continue on this scheme or if there are other labour activation programmes available to such a person. [1245/15]
View answerWith effect from 3 April 2000, lifetime cumulative maximum participation on CE by an individual is as follows:
- 3 years (156 weeks) maximum for persons under 55 years of age;
- 6 years (312 weeks) maximum for persons of 55 years of age up to State Pension age (inclusive of any CE participation under 55 years of age); and
- For people in receipt of a qualifying disability-linked social welfare payment, for those under 55 years of age (Part-Time Job Option only), 4 years cumulative time on CE applies and 7 years cumulative time for those between 55 and State Pension age (Part-Time Job Option only).
Participation on CE prior to 3rd April 2000 is not counted.
In the circumstances outlined by the Deputy, the person is 55 or over and has already participated on CE for 3 years (assuming s/he has left the scheme). Therefore, the person may have eligibility for a maximum of 3 additional years’ participation (out of the lifetime cumulative maximum of 6 years), subject to the standard qualifying criteria for entry to the scheme.
If the person is currently in receipt of a CE-qualifying social welfare payment for more than 12 months, but less than 3 years, they may qualify under the Part-Time Integration (PTI) Option of CE for one year’s participation. On finishing the year on CE, they would have to exit the scheme and re-qualify for another year on CE (under the PTI Option) by being in receipt of a qualifying social welfare payment for a minimum of 12 months.
If the person is currently in receipt of a CE-qualifying social welfare payment for 3 years or more, they may be eligible under the Part-Time Job Option of CE, which may be for 3 consecutive years’ participation, subject to annually renewable contracts.
The other labour market programmes run by the Department include Tús and Gateway. In the main, qualifying persons are selected by the Department for a placement on these schemes as part of the activation process. Further details can be obtained from the local Intreo centre or from the Department’s website – www.welfare.ie.
It should also be noted that JobBridge, the National Internship Scheme, provides work experience opportunities for unemployed people. It is aimed at people who have been either getting a jobseeker’s payment or signing for credits for at least 3 months. Participants in the scheme will be offered an internship of 6 or 9 months with a host organisation. If they take up an internship they will keep their social welfare payment and will get an extra €50 per week.
67. Deputy Robert Troy asked the Tánaiste and Minister for Social Protection the cost to extend paid maternity leave from 26 weeks to 52 weeks over a five-year period: year 1, 26 weeks to 36 weeks; year 2, 36 weeks to 40 weeks; year 3, 40 weeks to 44 weeks; year 4, 44 weeks to 48 weeks; year 5, 48 weeks to 52 weeks; and if she will make a statement on the matter. [1269/15]
View answerMaternity benefit is an income maintenance payment awarded to eligible women for a 26-week period on foot of a confinement. Entitlement to this benefit for employees is contingent on entitlement to statutory maternity leave.
In 2015 my Department will spend an estimated €254.16 million on maternity benefit and adoptive benefit, a related scheme. Based on this estimate the projected cost of increasing maternity and adoptive benefit provision to 52 weeks over a five year period is as follows:
|
Year |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Additional cost 26 to 36 weeks |
€97.75m |
€97.75m |
€97.75m |
€97.75m |
€97.75m |
|
Additional cost 36 to 40 weeks |
€39.11m |
€39.11m |
€39.11m |
€39.11m |
|
|
Additional cost 40 to 44 weeks |
€39.11m |
€39.11m |
€39.11m |
||
|
Additional cost 44 to 48 weeks |
€39.11m |
€39.11m |
|||
|
Additional cost 48 to 52 weeks |
€39.11m |
||||
|
Total additional cost |
€97.75m |
€136.86m |
€175.96m |
€215.06m |
€254.16m |
|
Total additional cost over 5 years |
€879.79m |
69. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection if she will support a matter (details supplied) regarding pensioners; and if she will make a statement on the matter. [1324/15]
View answerI am very aware of the funding difficulties facing many pension schemes at this time. A number of both legislative and administrative changes have been made in recent years to assist employer and the trustees of pension schemes address the funding challenges facing such schemes.
The most recent changes to pension legislation extended the options available to the trustees of a pension scheme in any consideration of a restructure of scheme benefits under section 50 of the Pension Act to include a portion of pensioner benefits. Prior to this change, the trustees of a scheme could only consider the benefit of active and deferred scheme members in any restructure of scheme benefits under section 50 of the Pensions Act. Any consideration of a restructure of pensioner benefits is limited to up to 10% of benefit where the annual pension is greater than €12,000 and less than €60,000. Pension over €60,000 can be reduced by up to 20%. Pensions up to €12,000 cannot be reduced. The benefits of active and deferred members do not receive this level of protection under the Pensions Act.
The recent changes to pension legislation essentially provide for the sharing of the risk of scheme underfunding across all scheme beneficiaries. 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.
These recent changes to the Pension Act are underpinned by additional measures which are being put in place by the Pensions Authority to assist pension schemes achieve a sustainable funding position.
70. Deputy Ruth Coppinger asked the Tánaiste and Minister for Social Protection the average time between an appeal of a decision being registered and the appeal being considered; the causes of delays; the steps her Department is taking to make any necessary improvement; and if she will make a statement on the matter. [1333/15]
View answerThe average appeal processing time for 2014 broken down by all social welfare scheme types is outlined in the following table.
Appeal processing times peaked in 2011 when the average time for an oral hearing was 52.5 weeks and for a summary decision was 25.1 weeks. In 2012 the average processing time for an oral hearing dropped to 39.5 weeks and the time for a summary decision increased slightly to 27.8 weeks. Further improvements were achieved in 2013, when the average appeal processing time reduced to 33.9 weeks for an oral hearing and 25.8 weeks for a summary decision. As at December 2014 the average time taken to process an appeal requiring an oral hearing has reduced to 28.7 weeks and for a summary decision to 21.4 weeks.
The reduction in processing time reflects the significant resources which have been invested in the Social Welfare Appeals Office over the last number of years.
In addition to the improvement in processing times, these measures have also led to a significant reduction in the number of appeals on hand from 20,414 at 1 January 2013 to 9,480 at 12 January 2015.
Appeal processing times are calculated from the registration date of the appeal to the date of its finalisation. They include all activities during this period including time spent awaiting any clarification from the appellant, time in the Department for comments by the Deciding Officer on the grounds of appeal put forward by the appellant, and any further investigation, examination or assessment by the Department’s Inspectors and Medical Assessors that is deemed necessary. While this process carries an inherent delay in terms of finalising an appeal, it also crystallises the flexibility and accessibility of the appeals system. By its nature and because it is a quasi-judicial function, the processing of appeals takes time and reflects the fact that, by definition, the appeal process cannot be a quick one.
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.
Appeals Processing Times by Scheme 2014
|
Scheme |
SWAO (weeks) |
Department of Social Protection (weeks) |
Appellant (weeks) |
Totals |
|
Adoptive Benefit |
8.2 |
8.9 |
- |
17.1 |
|
Blind Pension |
18.7 |
11.2 |
- |
29.9 |
|
Carers Allowance |
8.8 |
19.3 |
0.4 |
28.6 |
|
Carers Benefit |
15.1 |
6.8 |
0.1 |
22.0 |
|
Child Benefit |
11.7 |
11.7 |
0.2 |
23.6 |
|
Disability Allowance |
9.6 |
11.1 |
0.1 |
20.7 |
|
Illness Benefit |
9.4 |
14.1 |
4.4 |
27.8 |
|
Partial Capacity Benefit |
13.0 |
37.1 |
- |
50.1 |
|
Domiciliary Care Allowance |
9.3 |
11.9 |
0.2 |
21.4 |
|
Farm Assist |
13.1 |
18.1 |
0.4 |
31.7 |
|
Bereavement Grant |
12.2 |
8.7 |
- |
20.9 |
|
Family Income Supplement |
9.6 |
18.1 |
- |
27.8 |
|
Invalidity Pension |
9.4 |
17.4 |
0.1 |
27.0 |
|
Liable Relatives |
9.8 |
28.0 |
0.5 |
38.3 |
|
One Parent Family Payment |
14.3 |
18.6 |
0.1 |
33.0 |
|
Maternity Benefit |
16.2 |
7.6 |
- |
23.8 |
|
State Pension (Contributory) |
12.4 |
17.6 |
0.7 |
30.7 |
|
State Pension (Non-Contributory) |
12.8 |
13.8 |
0.1 |
26.8 |
|
State Pension (Transition) |
13.8 |
29.4 |
0.3 |
43.5 |
|
Occupational Injury Benefit |
12.0 |
35.1 |
0.4 |
47.5 |
|
Disablement Pension |
13.3 |
14.4 |
- |
27.7 |
|
Incapacity Supplement |
10.4 |
23.8 |
- |
34.2 |
|
Guardian's Payment (Con) |
11.0 |
8.6 |
- |
19.6 |
|
Guardian's Payment (Non-Con) |
11.5 |
10.1 |
- |
21.7 |
|
Jobseeker's Allowance (Means) |
12.6 |
16.4 |
0.2 |
29.1 |
|
Jobseeker's Allowance |
11.0 |
13.1 |
0.1 |
24.3 |
|
JA/JB Fraud Control |
12.1 |
- |
- |
12.1 |
|
Jobseeker's Benefit |
10.7 |
14.6 |
0.1 |
25.3 |
|
Pre Retirement Allowance |
6.1 |
4.0 |
- |
10.1 |
|
Respite Care Grant |
10.8 |
9.6 |
0.2 |
20.6 |
|
Supplementary Welfare Allowance |
9.3 |
11.5 |
0.2 |
21.0 |
|
Survivor's Pension (Con) |
10.4 |
21.4 |
0.2 |
32.0 |
|
Survivor's Pension (Non-con) |
10.5 |
17.5 |
- |
28.0 |
|
Widows Parent Grant |
15.1 |
7.1 |
- |
22.2 |
|
All Appeals |
10.5 |
13.4 |
0.4 |
24.2 |
71. Deputy David Stanton asked the Tánaiste and Minister for Social Protection her plans to reopen the community services programme to new applicants; and if she will make a statement on the matter. [1346/15]
View answerThe community services programme (CSP) is designed to address gaps in the delivery of key local services, to tackle disadvantage and to ensure that community facilities are utilised. It provides valuable resourcing for service delivery undertaken by not-for-profit companies and cooperatives in communities around the country. Some 2,800 people are supported in employment by the programme across approximately 400 not-for-profit companies and co-operatives. Funding of €46m has been provided for the programme in 2015 which will maintain the current level of activity.
Service providers must operate community or social enterprises that are able to deliver tangible services and are capable of generating non-public revenues from their operations by way of charging fees, sales and/or fundraising. The programme is not intended to represent full funding for any operation. Rather, funding is provided on the basis of a contribution to the cost of full-time staffing positions to support the delivery of the service and can include management and non-management elements.
Given the restrictions on resources, the Department has been unable to make an open call for new proposals to the programme for a number of years. However, from time to time and as resources allow, the Department does process new applications received from organisations that have expressed an interest in and are considered eligible under the programme. Any not-for-profit company wishing to express an interest to be considered for the programme can send an expression of interest and its proposals to the Department by email to cspinfo@welfare.ie.
73. Deputy Jim Daly asked the Tánaiste and Minister for Social Protection when her Department will have completed a review to decide if payments can be made to persons under the insolvency payments scheme after being made redundant by companies which have not been liquidated; and if she will make a statement on the matter. [1378/15]
View answer74. Deputy Jim Daly asked the Tánaiste and Minister for Social Protection the number of persons who have applied to her Department for a payment from the insolvency payments scheme but do not qualify as the employer has not been liquidated for each of the past seven years; the value of these application to the applicants; and if she will make a statement on the matter. [1379/15]
View answer110. Deputy Brendan Griffin asked the Tánaiste and Minister for Social Protection if any progress has been made on the review of eligibility for the insolvency payments scheme; and if she will make a statement on the matter. [1714/15]
View answerI propose to take Questions Nos. 73, 74 and 110 together.
My Department is continuing to review the position to establish what, if anything, can be done to progress payments to individuals in situations where employers cease trading without engaging in a formal winding-up process, and who owe moneys to their employees.
My officials are consulting with a range of interested parties including the Office of the Director of Corporate Enforcement, the Department of Jobs, Enterprise and Innovation and the Revenue Commissioners to establish what, if anything can be done to progress payments to individuals in these situations. To date my officials have had one formal meeting with the various parties mentioned above in connection with this issue and continue to engage with all relevant parties to try to progress the matter.
I am not in a position to indicate when this review will be completed.
My Department is aware of circumstances where companies have ceased trading without engaging in a formal winding-up process and where those employers may owe monies to their employees. Such employees are not eligible for payments under the insolvency payments scheme. At present we have information on approximately 200 such situations. We have been informed of the value of the claims in 75% of cases and they range in value from €52 to €33,411. However, the number and value of cases notified to us cannot be taken to be indicative of the total number. Individuals in this situation may not have made contact with the Department, as they would be aware that eligibility for payment under the insolvency payments scheme only arises when a company has been formally wound-up.
