Pensions Insolvency Payments Scheme

Thursday, 17 December 2015

Questions (59)

Michael McGrath

Question:

59. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection if she is aware of any double insolvency pension schemes whereby compensation will be payable to former members; if she has estimated the potential liability to the State in such circumstances; the action she plans to take in this regard; and if she will make a statement on the matter. [45962/15]

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Written answers

Tánaiste and Minister for Social Protection

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 date of enactment and which may make a claim against the State. The following lists the schemes which have applied to the Pensions Authority for certification as an eligible scheme for payment under PIPs.

Application for Pension 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	Mc Cormick MacNaughton Limited	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	269	544
30/06/09	Waterford Wedgewood PLC	22	1	5
15/01/2013	Curragh Tintawn Carpets	40	77	37
22/10/2012	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.

The Social Welfare and Pensions (No. 2) Act 2013 amended the Pensions Act 1990 to address double insolvencies occurring after the 25 December 2013. No claim has yet been made in respect of any double insolvencies occurring since the enactment of the 2013 legislation.