Dáil Éireann Debate, Wednesday - 11 July 2018
537. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the reason behind the delay in addressing issues in relation to defined benefit pensions and in particular the delay in progressing the Social Welfare, Pensions and Civil Registration Bill 2017; and if she will make a statement on the matter. [31139/18]
View answerThe Roadmap for Pensions Reform, which was published by the Government earlier this year, 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.
The second Stage of the Social Welfare, Pensions and Civil Registration Bill 2017 concluded on 4 October 2017 and Government approval to draft provisions for a number of additional items to be included in the Bill at Committee Stage was obtained from Cabinet. These provisions are currently being finalised with the Office of the Parliamentary Counsel. They include, amongst other matters, provisions related to defined benefit pensions and measures related to the General Data Protection Regulation, GDPR.
A key priority for the Government is to provide additional protections for scheme members’ pension benefits. However, it is essential that any new measures recognise the current pension landscape in Ireland so that a balanced, proportionate approach is developed and that unintended negative consequences do not arise.
Under existing pensions law, there is no legislative obligation on the employer to make contributions to a scheme. However, the provisions of this Bill will introduce a new regime into the Pensions Act 1990 which will, amongst other things, enable the Pensions Authority to make a funding obligation direction specifying payments to be made by a sponsoring employer to the pension scheme where no agreement is reached, within a specified time period, to resolve a funding deficit.
In order to achieve a balanced approach it has been necessary to consult with and obtain numerous legal advices from the Office of the Attorney General in respect of the DB provisions.
The provisions relating to defined benefit pensions are quite technical and complex. Work on finalising the provisions is at an advanced stage and when complete an early date for Committee Stage will be requested from the committee.
