Dáil Éireann Debate, Tuesday - 18 September 2012
692. Deputy Sean Fleming asked the Minister for Social Protection her plans to amend legislation dealing with private pensions in the private sector (details supplied); and if she will make a statement on the matter. [37823/12]
Amharc ar fhreagraThe provision for increases in payments to current pensioners is determined by the rules of the pension scheme and is not provided for in legislation. However, the Pensions Act was amended in 2009 to provide that where a scheme was considering a restructure of scheme benefits, it could decide to discontinue increases in payment to current pensioners.
The revaluation of preserved benefits for former scheme members is provided for in the Pension Act 1990. The Act prescribes that the percentage of increases applied shall be the lesser of the increase in the general level of consumer prices during that year or 4 per cent. While there was an increase of 2.6 per cent in the revaluation of preserved benefits for 2011, this was the first increase in preserved benefits in 3 years.
The revaluation rate applied to preserved benefits has for most of the last decade lagged behind the rate of change in the average industrial wage. This position has now been reversed. The increase in the average industrial wage in 2011 was 1.4%.
The operation of the Pension Act is monitored on an on-going basis and while there are no proposals at the moment to amend the revaluation provision in the Pensions Act the matter will be kept under review.
