Dáil Éireann Debate, Tuesday - 7 July 2015
59. Deputy Michael McCarthy asked the Tánaiste and Minister for Social Protection the changes contained in the Social Welfare and Pensions Act 2013 in respect of the entitlements of deferred members of pension schemes in the event of the schemes being wound up; if a scheme (details supplied) comes under the provisions of this Act; and if she will make a statement on the matter. [27188/15]
Amharc ar fhreagraWhilst I am not in a position to comment on individual schemes, I can confirm any defined benefit schemes which are required to meet the funding standard obligations of the Pensions Act are subject to the changes contained in the Social Welfare and Pensions Act 2013 in respect of the entitlements of deferred members of pension schemes in the event of the schemes being wound up. Ultimately it is the responsibility of the trustees of a pension scheme to ensure compliance with the funding standard obligations of the Pensions Act.
The Social Welfare and Pensions (No.2) Act 2013, which came into operation from 26th December 2013, amended the Pensions Act 1990 to change 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. It also broadened the options available to trustees in any consideration of a restructure of scheme benefits under section 50 of the Pensions Act. The amendment essentially provides for the sharing of the risk of scheme underfunding across all scheme members and beneficiaries. The issue of how these changes might be applied is a matter for the trustees of the scheme who are required under trust law to act in the best interests of all scheme beneficiaries.
Any consideration of a restructure of pension scheme benefits under section 50 of the Pensions Act must comply with the provisions in the Act and with guidance issued by the Pensions Authority. This guidance makes provision for the notification of all scheme members in advance of any proposed restructuring of scheme benefits. In such circumstances, scheme members will have at least one month to make a submission to the trustees of the scheme in relation to such a proposal. The Pensions Authority must be satisfied that all the provisions in the guidance are complied with before a restructuring of scheme benefits can take place.
