Dáil Éireann Debate, Tuesday - 13 February 2018
146. Deputy Donnchadh Ó Laoghaire asked the Minister for Finance if his attention has been drawn to pensions and pension funds, part of which predate the foundation of the State; if such pensions could be willed or bequeathed to a successor; and if such pensions could still retain a monetary value which could be claimed. [7329/18]
View answer147. Deputy Donnchadh Ó Laoghaire asked the Minister for Finance if his attention has been drawn to €400 million in old pension funds unclaimed; and if he will make a statement on the matter. [7330/18]
View answerI propose to take Questions Nos. 146 and 147 together.
As the Deputy will appreciate, a number of State bodies have a role in relation to the broad area of pensions policy. As Minister for Finance, my role has been primarily in relation to the use of tax policy to incentivise pension savings.
My colleague, Deputy Regina Doherty, as Minister for Employment Affairs and Social Protection has responsibility for State pension policy and for policy in relation to voluntary, supplementary pension provision.
In that context, officials from my department have been in contact with officials from the Department of Employment Affairs and Social Protection who advised that Section 59 of the Pensions Act 1990 requires trustees to make arrangements for the payment of benefits, as provided for under the rules of a pension scheme, as they become due, whether in the State or in any other Member State. Trustees must also ensure that proper membership and financial records are kept. Members of pension schemes should receive annual statements from any pension schemes they have paid into. They further indicated that the Department of Employment Affairs and Social Protection has arrangements in place to assist with scheme member tracing, where pension schemes are having difficulty locating scheme members. Where the administrator of a pension scheme or of a life company is unable to trace a member using their own resources they can avail of that Department’s host mailing service for assistance in this process.
There is currently no single platform or infrastructure in place in Ireland allowing deferred scheme members to access information on their pensions savings and to trace their pension entitlements. The Department of Employment Affairs and Social Protection has had a number of meetings with industry where it was indicated that in many cases the pension funds can find owners of pension benefits using their own searches or by utilising that Department’s host mailing system.
Unclaimed benefits within occupational pension schemes can remain in the scheme indefinitely. Such funds remain there in trust for the member. Unclaimed personal pension funds and PRSAs established with an insurance undertaking are subject to the Unclaimed Life Assurance Policies Act 2003. Where the policy owner cannot be traced, those funds are transferred to the Dormant Accounts Fund. The Dormant Accounts Fund is part of a framework for the administration of unclaimed accounts. Statutory functions related to the Fund are held by the Minister for Rural and Community Development.
Under the Dormant Accounts Acts 2001-2012 and the Unclaimed Life Assurance Policies Act 2003, balances on dormant accounts with banks, building societies and An Post and the net encashment value of certain life assurance policies are remitted to the State annually. The balances on dormant accounts are paid into the Dormant Accounts Fund, which is managed by the NTMA.
Where an individual has been notified by an institution or has reason to believe that they have dormant funds in a branch of a bank, building society or An Post they should approach the relevant institution concerned and complete the Dormant Account Claim Form.
Where an individual has been advised by their life assurance company or have reason to believe they hold an unclaimed life assurance policy, they should approach the company concerned and complete the Unclaimed Life Assurance Policy Enquiry Form.
