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Defined Benefit Pension Schemes

Dáil Éireann Debate, Tuesday - 20 March 2018

Tuesday, 20 March 2018

Questions (935, 936)

Darragh O'Brien

Question:

935. Deputy Darragh O'Brien asked the Minister for Employment Affairs and Social Protection her views on the closure of a company's (details supplied) defined benefit pension scheme; her plans to take action on same; and if she will make a statement on the matter. [11917/18]

View answer

Darragh O'Brien

Question:

936. Deputy Darragh O'Brien asked the Minister for Employment Affairs and Social Protection the steps she will take to safeguard workers' defined benefit pension schemes; the further steps she will take to prevent solvent companies walking away from their obligations to their employees in defined benefit pension schemes; and if she will make a statement on the matter. [11918/18]

View answer

Written answers

I propose to take Questions Nos. 935 and 936 together.

The Deputy will appreciate that I cannot comment on issues relating to a particular pension scheme. However, generally speaking, trustees of pension schemes have duties and responsibilities under the Pensions Act, under trust law, and under other relevant legislation.

They must administer the trust in accordance with the law and the terms of the trust deed and rules. The provisions of the Pensions Act are enforced by the Pensions Authority so any issues or complaints in relation to a particular scheme should be notified to the Authority for action. The Pensions Authority will assess if there has been a breach of any legal obligations and take any necessary action if such a breach is found.

The Roadmap for Pensions Reform, which was published recently by the Government, details specific measures that will modernise our pension system. It sets out under Strand 4, ‘Measures to Support the Operation of Defined Benefit Schemes’, that the Government is committed to advancing the Social Welfare, Pensions and Civil Registration Bill 2017 to respond to the ongoing difficulties in DB schemes and to increase protections for members as well encouraging employers to ensure that schemes are well funded and managed.

As the Deputy is aware, the General Scheme of the Social Welfare and Pensions Bill 2017 (now the Social Welfare, Pensions and Civil Registration Bill 2017), was published in May 2017 and contained a number of key measures relating to DB pension schemes. These proposed provisions will ensure that an employer cannot “walk away” at short notice from the pension scheme it is supporting. They seek a middle road between the current position where employers can abandon DB schemes and full and immediate debt on employer provisions. The measures will act to support existing provisions in the Pensions Act and will provide for further protection for scheme members’ benefits and enhance employer responsibilities for their schemes.

These provisions are quite technical and complex. Work to finalise them is at an advanced stage and I hope to be in position to bring forward the amendments at Committee Stage in the near future.

I hope this clarifies the matter for the Deputy.

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