Dáil Éireann Debate, Thursday - 8 March 2018
550. Deputy John Brady asked the Minister for Employment Affairs and Social Protection her views on the moves from defined benefit to defined contribution pension schemes by companies in which the pension pot is in surplus; and if she will make a statement on the matter. [10896/18]
Amharc ar fhreagra613. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the reason the issue of defined benefit schemes in surplus being closed down as has been occurring in recent years was not examined in the Roadmap for Pensions Reform; and if she will make a statement on the matter. [11676/18]
Amharc ar fhreagraI propose to take Questions Nos. 550 and 613 together.
The Roadmap for Pensions Reform details specific measures that will modernise our pension system. It sets out under Strand 4, ‘Measures to Support the Operation of Defined Benefit Schemes’, that the Government is committed to advancing the Social Welfare, Pensions and Civil Registration Bill 2017 to respond to the ongoing difficulties in DB schemes and to increase protections for members as well encouraging employers to ensure that schemes are well funded and managed.
As the Deputy is aware, the General Scheme of the Social Welfare and Pensions Bill 2017 (now the Social Welfare, Pensions and Civil Registration Bill 2017), was published in May 2017 and contained a number of key measures relating to DB pension schemes. These proposed provisions will ensure that an employer cannot “walk away” at short notice from the pension scheme it is supporting. They seek a middle road between the current position where employers can abandon DB schemes and full and immediate debt on employer provisions. The measures will act to support existing provisions in the Pensions Act and will provide for further protection for scheme members’ benefits and enhance employer responsibilities for their schemes.
These provisions are quite technical and complex. Work to finalise them is at an advanced stage and I hope to be in position to bring forward the amendments at Committee Stage in the near future.
I hope this clarifies the matter for the Deputy.
