Dáil Éireann Debate, Wednesday - 10 October 2012
24. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the number of pension schemes taking part in the pensions insolvency scheme; his plans for the future development of the scheme; the amount of State resources that are available to support it; and if he will make a statement on the matter. [43403/12]
Amharc ar fhreagraTwo pension schemes are taking part in the Pensions Insolvency Payment Scheme (PIPS). These are the Waterford Crystal Staff and the Waterford Crystal Factory schemes. The trustees of the two schemes paid €40.8 million in total to participate in PIPS.
The State has now taken over responsibility for making future pension payments to those persons who were already pensioners of the two Waterford schemes at the time the company wound-up. The price paid to enter PIPS is intended to cover all future payments to these pensioners and also the administration costs of the scheme. Pricing was carried out by the National Treasury Management Agency on a basis that is cost-neutral to the Exchequer. No additional State resources are therefore needed to support the PIPS scheme.
Under PIPS the Exchequer has been able to provide pensions at a lower cost than would a commercial enterprise. As a result PIPS will reduce the pensions shortfall facing the deferred pensioners of the two Waterford schemes while being cost neutral to the Exchequer.
A review of the operation of PIPS will be carried out by early 2013.
