The rulings of the European Court of Justice (ECJ) on the Insolvency Directive (2008/94) was in response to a reference by the High Court seeking clarification of the interpretation of European law emanating from EU Directive 2008/94EC on the protection of employees in the event of the insolvency of their employer.
The ECJ ruling has 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 application has been made in respect of any scheme under these provisions.
The Social Welfare and Pensions (No.2) Act 2014 amended the Pensions Act 1990 to address double insolvencies which arose between 25 January 2007 and 25th December 2013. The Department is currently implementing the mediated agreement in respect of the Waterford Crystal Pension Schemes for Factory Workers and Staff Employees under these provisions. The Department is also engaging with the representatives of a small number of other such schemes, but no formal application has yet been made in respect of these engagements.
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. The following table lists the schemes which have applied to the Pensions Authority for certification as an eligible scheme for payment under PIPs.
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.
|
Name of Scheme
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Number of Pensioners
|
|
2012
|
|
|
Waterford Crystal Factory Scheme
|
450
|
|
Waterford Crystal Staff Scheme
|
160
|
|
2013
|
|
|
Glencullen Motors
|
18
|
|
McConnell Group Limited and Associated Companies Superannuation Fund
|
12
|
|
McConnell Group Limited and Associated Executive Companies Superannuation Fund
|
3
|
|
Protim Abrasives - FAC 1990 Pension Scheme
|
16
|
|
2014
|
|
|
Brooks Group
|
50
|
|
Curragh Tintawn Carpets
|
40
|
|
McCormick MacNaughton
|
5
|
|
2015
|
|
|
Waterford Wedgwood Supplementary Benefits Scheme
|
21
|
