Dáil Éireann Debate, Thursday - 28 May 2015
64. Deputy Róisín Shortall asked the Tánaiste and Minister for Social Protection her plans to introduce legislation to place an onus on employers to adequately fund their pension schemes and keep pension promises made to workers. [21211/15]
View answer65. Deputy Róisín Shortall asked the Tánaiste and Minister for Social Protection her plans to introduce legislation to require employers to fund pension protection schemes. [21212/15]
View answerI propose to take Questions Nos. 64 and 65 together.
Defined 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 benefit scheme is set up, the level of employer and employee contributions is agreed and established in contract in each schemes Trust Deeds and Rules. The Trust Deeds and Rules differ from scheme to scheme, and as with any contractual situation, reflect the parameters on the level of obligation of the parties involved.
You will be aware that a range of legislative measures have been put in place in recent years to assist employers and the trustees of pension scheme address the funding difficulties encountered by many defined benefit pension schemes. The imposition of a debt on employers or the provision for a pension protection fund were considered during the deliberation process leading up to introduction of these legislative changes. However, given the uncertainties as to the overall impact and potential for unintended consequences of applying debt on the employer selectively or otherwise and having regard to the small size of the defined benefit sector, and given the administrative complexities and costs associated with a pension protection fund, these measures were not progressed
I am satisfied that the measures put in place in recent years take an approach which will support schemes with funding difficulties to gradually move to a more sustainable funding position.
