Billy Timmins
Ceist:208 Deputy Billy Timmins asked the Minister for Social Protection the position regarding a matter (details supplied); and if he will make a statement on the matter. [38018/10]
Amharc ar fhreagraWednesday, 20 October 2010
Ceisteanna (172)
Freagraí scríofa
Under the Pensions Act, defined benefit pension schemes must meet a minimum Funding Standard which requires that schemes maintain sufficient assets to enable them discharge their accrued liabilities in the event of the scheme winding up.
The Government is fully aware of the pressures being faced by all defined benefit schemes due to the recent market downturn. Over the last two years, the Government has introduced a range of measures to assist pension funds. These included the granting of extra time for schemes to submit funding proposals.
Other measures introduced in last year's Social Welfare and Pensions Act allowed for the restructuring of underfunded schemes and for a more equitable distribution of assets in the event of the wind-up of an underfunded defined benefit scheme.
In recognition of the ongoing funding difficulties experienced by defined benefit pension schemes, last week I announced that the new defined benefit model as outlined in the National Pensions Framework would be fast-tracked with a view to its introduction, following legislative change, by July 2011. It is envisaged that the new DB model will consist of a core benefit element which would have to be guaranteed and a non-core element, which would be payable depending on economic conditions and which should be secured in years of good scheme performance.
On the basis of this decision, the Deputy will be aware that the Pensions Regulator announced that the November deadline for receipt of funding proposals has been further extended. The Regulator will announce shortly the new extended timeframe for such proposals.
The proposal for a sovereign annuity mentioned by the Deputy is also being given serious consideration. It must be stressed that the issue is by no means straightforward and the benefits and risks involved for all stakeholders are being fully assessed.