Dáil Éireann Debate, Tuesday - 23 June 2020
792. Deputy Peter Burke asked the Minister for Employment Affairs and Social Protection if consideration has been given to amending the Pensions Act 1990 to allow for collective bargaining by an association (details supplied); and if she will make a statement on the matter. [12194/20]
Amharc ar fhreagraThe Deputy will appreciate that I am unable to comment on issues relating to a particular pension scheme.
The term ‘collective bargaining’ has a specific meaning under Irish law following the enactment of the Industrial Relations (Amendment) Act 2015 and would not encompass collective bargaining between a pensioner representation association and the trustees of their pension scheme. Consequently, the legislative amendment asked about does not arise. Industrial Relations legislation is a matter for the Minister of Business, Enterprise and Innovation.
Scheme trustees have a range of duties and responsibilities charged under trust law, under the Pensions Act 1990, as amended, and under other relevant legislation. The duties of pension scheme trustees include administering the scheme in accordance with the law and the terms of the trust deed and scheme rules as well as ensuring compliance with the requirements that apply to these schemes. Trustees have a fiduciary duty to act in the best financial interest of all scheme members, whether active, deferred or retired, and must serve all beneficiaries of the scheme impartially. Therefore, I am advised that it would run contrary to their fiduciary obligations to serve one class of beneficiary over any others or to provide any one class with preferential access to the trustees.
Information previously obtained by my Department from the Department of Communications, Climate Action & Environment, which has responsibility for matters relating to the sponsoring employer, indicated that scheme members (both serving staff and retired staff) have a vote in electing a member-nominated trustee (for subsequent nomination to appointment by the Board of the sponsoring company) from both the active member nominees and the retired members nominees.
Measures were introduced in 2015 to facilitate engagement between the trustees of a pension scheme and groups representing the interests of pensioner and deferred scheme members. Changes to guidance issued by the Pensions Authority require the trustees of a pension scheme to notify groups representing the interest of scheme members of proposals to issue a direction under section 50 of the Pensions Act to restructure scheme benefits. This affords the representative group an opportunity to make a submission to the trustees of a pension scheme in relation to proposals to restructure scheme benefits.
In addition to the opportunity to make submissions on any section 50 proposals to restructure scheme benefits, groups representing the interests of pensioners and deferred scheme members also have a right to appeal a section 50 direction by the Pensions Authority to the High Court on a point of law.
More generally, there is no impediment to scheme members, or a representative group for such scheme members, from communicating to the trustees of a scheme in respect of matters pertaining to that scheme.
Where a pension scheme has an internal disputes resolution (IDR) procedure, this provides for a formal structure through which beneficiaries or potential beneficiaries can raise complaints or disputes and engage directly with the pension provider concerned.
If an individual is dissatisfied with the outcome of an IDR process he/she may advance a complaint to the Financial Services and Pensions Ombudsman, who is an independent and impartial statutory officer responsible for investigating and ruling on complaints from active members, deferred members and beneficiaries of occupational pension schemes, trust Retirement Annuity Contracts (RACs) or Personal Retirement Savings Accounts (PRSAs). The time limits for making a complaint to the Financial Services and Pensions Ombudsman are set out under section 51 of the Financial Services and Pensions Ombudsman Act 2017 which comes within the remit of the Minister for Finance.
The Pensions Authority is the regulatory body charged with the supervision of pension schemes and has the necessary powers under statute to investigate the conduct of a pension scheme should it become aware that a scheme is not in compliance with the provisions of the Pensions Act. Where a pension scheme member is of the view that the scheme is not in compliance with legislative requirements he or she may make a formal complaint to the Pensions Authority.
I hope this clarifies matters for the Deputy.
