Dáil Éireann Debate, Thursday - 2 October 2014
48. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection if she will consider introducing protections for deferred members of defined benefit pension schemes being wound up; and if she will make a statement on the matter. [37438/14]
Amharc ar fhreagraSection 48 of the Pensions Act sets out the manner in which the assets of a defined benefit pension scheme are distributed in the event of the wind up of a pension scheme. These rules prioritise the benefits of pensioner over the benefits of active and deferred scheme members. The priority given to the distribution of assets to deferred scheme members is the same as that given to active scheme members. The Social Welfare and Pensions (No. 2) Act 2013 amended the Pensions Act to change the wind up rules. This change deprioritised an element of pensioner benefits in favour of the benefits of active and deferred scheme members. There are no plans to make further changes to section 48 of the Pensions Act at this time.
The manner in which the assets of a pension scheme are distributed is not an issue when a pension scheme is fully funded. The Pensions Authority is working with the trustees of defined benefit pension schemes to ensure that all schemes can secure a sustainable funding position.
