Dáil Éireann díospóireacht -
Tuesday, 7 Apr 1992

Vol. 418 No. 4

Written Answers. - Former Company Employees' Pension Fund.

Joseph Doyle

Ceist:

245 Mr. Doyle asked the Minister for Labour if he will outline the up-to-date situation in relation to former employees of a company (details supplied) in relation to their pension fund; and when it is intended to meet their claim of £118,813 from the insolvency payment scheme, provided for under the Protection of Employees (Employers' Insolvency) Act, 1984.

Minister for Labour (Mr. Cowen)

The problems encountered by the former employees in question have arisen through their membership of a private company occupational pension scheme. The administration and operation of such schemes is the responsibility of the administrators and trustees concerned and is a matter in which I have no function.

The Minister for Labour's sole function in regard to occupational pension schemes arises under the Protection of Employees (Employers' Insolvency) Acts, 1984 to 1991, which provide for the payment from the Social Insurance Fund of certain outstanding pension contributions. Section 7 of the 1984 Act sets down the conditions of payment.

The outstanding contributions covered for payment under the Acts are limited to those which both the employer and the employees were liable to pay in respect of the pension scheme during the year prior to the date of the insolvency of the employer.

The only other condition in relation to the employees' contributions is that the amount claimed must have been deducted from the pay of the employees but not paid over to the administrator/trustees of the occupational pension scheme.

In the case of employer's contributions, the amount that may be claimed is the lesser of the following: (a) the balance of employer's contributions remaining unpaid in respect of the 12 months immediately preceding the date of the employer's insolvency; or, (b) the amount certified by an actuary to be necessary for the purpose of meeting the liability of the occupational pension scheme on dissolution to pay the benefits provided by the scheme to or in respect of the employees concerned.

In the case referred to by the Deputy, my Department has an application from the Receiver of the company for payment of £118,813 from the Social Insurance Fund in respect of unpaid contributions to the occupational pension scheme covering the staff and executives of the company concerned comprising of, (i) unpaid employees' contributions amounting to £18,599 and (ii) unpaid employer's contributions amounting to £100,214. There have been considerable problems in obtaining all the information necessary to establish the exact amount qualifying for recoupment from the Social Insurance Fund. In particular, there have been problems in clarifying the specific amount of the contributions due/paid in the year immediately preceding the date of the insolvency. This gives rise to a difficulty in establishing what amounts, if any, may be payable under the Acts in respect of both employees' and employer's contributions.

However, I am fully aware of the urgency of this matter and I hope to be in a position to take a final decision at a very early date. At that stage, I will arrange for immediate payment from the Social Insurance Fund of any amount deemed to be eligible in accordance with the provisions of the Protection of Employees (Employers' Insolvency) Acts, 1984 to 1991. If the administrator/trustees of the Pension Fund are not satisfied with the decision, it is open to them to submit an appeal to the Employment Appeals Tribunal.