Dáil Éireann Debate, Thursday - 19 September 2013
93. Deputy Tom Fleming asked the Minister for Social Protection if she will honour the terms of the defined benefit pension scheme of ESB staff who are contributing significant moneys to this scheme (details supplied); and if she will make a statement on the matter. [38909/13]
Amharc ar fhreagraThe Deputy will appreciate that I cannot comment on issues relating to a particular pension scheme. The Pensions Board supervises the regulation of individual schemes in accordance with the Pensions Act.
In general terms, I can advise that funded defined benefit pension schemes are required to satisfy the Funding Standard as set out in the Pensions Act 1990, as amended. This is a wind up standard which means that a funded defined benefit pension scheme is required to maintain sufficient assets to meet the liabilities of the scheme in the event of the wind up of the scheme. Where a scheme fails to satisfy the Funding Standard, the scheme is required to submit a funding proposal to the Pensions Board setting out how it is proposed to restore scheme funding.
I amended the Pensions Act in 2012 to require defined benefit pension schemes to hold additional funding in the form of a risk reserve in order to provide stronger protection for scheme members against future volatility in financial markets. This requirement will apply in a gradual way from 2016. I also amended the Pensions Act this year to provide the Pensions Board with the power to wind up a pension scheme. This power can only be exercised where a scheme is underfunded and the trustees and the employer are not in a position to adopt a funding proposal or where the trustees of a scheme fail to comply with a direction from the Pensions Board to restructure scheme benefits.
My objectives with regard to regulation are to ensure that measures are in place to protect the pension rights of scheme beneficiaries.
