Willie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

I move amendment No. 23:

In page 17, between lines 5 and 6, to insert the following:

“(1E) An appeals mechanism for pensioners shall be put in place where trustees have decided upon reduced benefits for members, and such appeals mechanism shall ensure that such pensioners have not been unfairly treated in any restructuring arrangement.”,”.

When people reach pension age and lose their employment, their sole means of survival is their pension. Despite some statements to the contrary, in many cases people who qualify for an occupational pension might for one reason or another not be entitled to a State pension. The trustees who administer these pension schemes have a great deal of power now. When this legislation is passed they will be able to reduce pensions substantially. The figures in the Mercer report indicate that some people who are receiving a fairly modest pension could suffer very substantial reductions in their income with negative consequences for their lifestyle as a result of a decision by trustees.

When a viable scheme is being restructured the trustees have sole discretion in how to restructure it. I accept that under Irish trust law trustees have certain obligations. They have a fiduciary duty and an obligation to inform the people affected. While they might have an obligation to inform them, they have no obligation to listen to them or take into account anything they say; it is solely a matter for the trustees to decide.

I am proposing the introduction of an appeals body - it could be a section of the Pensions Board or whatever - to which aggrieved pensioners can appeal. This would allow them to point out something that is unfair and hitting their section particularly hard - perhaps people higher up could take more of the pain or whatever. All the talk about the right to consultation and the need to inform people is fine, but informing people about a fait accompli does not get us very far. Trustees are obliged to inform people, but are not obliged to listen to them. We need an appeals mechanism whereby a pensioner who feels aggrieved by a decision of the trustees can appeal his or her case.