Dáil Éireann Debate, Tuesday - 24 February 2015
198. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection if her attention has been drawn to any other double insolvency pension schemes whereby compensation will be payable to former members; if she has estimated the potential liability to the State in such circumstances; her plans in this regard; and if she will make a statement on the matter. [7963/15]
Amharc ar fhreagraRulings of the European Court of Justice (ECJ) on the Insolvency Directive (2008/94) have implications for any defined benefit pension scheme where on the date of the wind up both the scheme and the employer are insolvent (double insolvency) and where the date of wind-up was after the date of the ECJ ruling in the UK Robins case of 25th January 2007.
The Social Welfare and Pensions (No.2) Act 2013 amended the Pensions Act 1990 to address double insolvencies occurring after the 25th December 2013. No claim has been made in respect of any double insolvencies occurring since the enactment of the 2013 legislation.
The Social Welfare and Pensions Act 2009 provided for the establishment by the Minister for Finance of a Pensions Insolvency Payments Scheme (PIPS) to provide for the payment of pensions, in the event of the wind up of a pension scheme where both the employer and the scheme are insolvent, at less cost than through traditional annuities, thereby making more scheme assets available for the pensions of those yet to retire.
Application for pension payments under this scheme would give an indication of the number of double insolvencies arising in the period since the ECJ ruling in the Robins case and prior to the 2013 legislation. Eleven schemes have been certified by the Pensions Authority as eligible schemes to apply to the Minister for Finance to pay pensions under PIPS. I understand that nine of the schemes have been accepted and one further scheme is being processed. An application to join PIPS has not been made to the Minster for Finance in respect of the remaining scheme. Any of these schemes which considers that the State has a liability for a shortfall in the funding in the scheme will need to establish the extent of any liability arising. No formal claim has been made in respect of any of these schemes.
