Michael Collins
Question:622. Deputy Michael Collins asked the Minister for Social Protection his plans to introduce emergency legislation to prevent solvent companies reneging on their pension obligations (details supplied). [1009/17]
View answerTuesday, 17 January 2017
Questions (622, 624, 633)
Michael Healy-Rae
Question:624. Deputy Michael Healy-Rae asked the Minister for Social Protection his views on a matter (details supplied) regarding pension schemes; and if he will make a statement on the matter. [1094/17]
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Ruth Coppinger
Question:633. Deputy Ruth Coppinger asked the Minister for Social Protection if he will bring forward legislation to prevent solvent companies ceasing the pension schemes for their employees and former employees; and if he will make a statement on the matter. [1269/17]
View answerWritten answers
I propose to take Questions Nos. 622, 624 and 633 together.
I am very much aware of the public concern highlighted by the recent publicity surrounding the Independent News and Media (INM) pension scheme.
In considering this matter it is imperative that any potential legislative change should be fully evaluated to ensure that the equilibrium of the pension sector is maintained. Any changes to the Pensions Act that legislatively alters the relationship between a pension scheme and its sponsoring employer could have far reaching implications for pensioners and the pension sector as a whole.
While there are strong arguments for the introduction of greater employer obligations as suggested by the Deputies, it is also the case that certain less desirable side effects may be a consequence. These could include prompting well-funded schemes to wind up to avoid new obligations; threatening a company’s financial stability; rendering some employers insolvent; and/or giving a competitive advantage to employers who either never provided a pension and/or put defined contribution schemes in place.
I would like to assure the Deputies that my Department and the Pensions Authority are closely monitoring developments in the defined benefit sector and keep the need for legislative change under continuous review.
I hope this clarifies the matter for the Deputies.