Willie Penrose (Longford-Westmeath, Labour) | Oireachtas source

I thank the Minister for her comprehensive reply. This is a very complex issue which needs to be addressed with great care, and consideration needs to be given to all of the various elements. There will be an impact on people who are currently in receipt of various pensions. That must be spelled out in the overall context that the Minister outlined. Defined benefit schemes are under pressure to submit funding proposals by the end of June and it will be quite difficult for them to reconcile this aspect and examine how it will affect benefits in terms of how they will proceed.

How will they reconcile this particular aspect of matters? How will it impact on benefits in respect of how they will progress? A good deal of company restructuring taking place in defined benefit schemes now is designed to keep the employer in existence and in operation. The net effect of employers agreeing to such restructuring is that their schemes do not come within the ambit or terms of the directive and this raises certain issues. Unless the matter is addressed an unusual conundrum could arise whereby, purely from a pensions perspective, pension scheme members may be better off if the employer goes into liquidation. A clear conflict can arise between the demands of the scheme and the survival of the employer and these need to be addressed quickly. It is an unusual conundrum and a difficult situation for everyone concerned, including those operating the schemes, the employers and the people who are making contributions to the schemes. There is a triangle of relationships in place and including the Department it is a four-sided stool or relationship. It is important that everyone gets together to ensure that the best outcome is available to all those concerned, especially those who are coming close to retirement and who have made contributions over a substantial period. These people are concerned about events and this is why it is important to bring finality and a way out of the significant difficulties that have arisen in this important area of people's existence.

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