Dáil Éireann Debate, Tuesday - 6 October 2009
888 Deputy Brian Hayes asked the Minister for Social and Family Affairs if she will reconsider her decision not to allow a company (details supplied) to be included in the pension insolvency payment scheme in view of the fact that it would be cost neutral to the State; if not, her reason for not including this company in the scheme; and if she will make a statement on the matter. [33850/09]
Amharc ar fhreagraThe Pensions Insolvency Payments Scheme (PIPS) is being established by the Minister for Finance on a pilot basis for a three year period.
This scheme is intended as an option of last resort and a social protection measure to assist pension schemes where the sponsoring employer is insolvent and the pension scheme is being wound up in deficit. The PIPS is intended to make it cheaper to pay for the pensions of retired pension scheme members, so that more money is available for the pension benefits of those who have not yet retired.
This scheme uses the definition of insolvency which applies to the insolvency payments scheme administered by the Department of Enterprise Trade and Employment and as set out in the Protection of Employees (Employers Insolvency) Act 1984. A change to eligibility criteria for PIPS to include an employer that is not insolvent could have an adverse influence on other employers' decisions with regard to the future sustainability of their DB pension schemes. It is also likely that such a change would have implications in terms of EU competition rules.
I have no plans therefore to extend the qualification criteria for PIPS to cover companies which do not meet the definition of insolvency.
