Joan Burton (Dublin West, Labour) | Oireachtas source

Two Deputies made quite valid comments. I believe I am answering those comments. Other Deputies made valid comments also and I am going to try to answer them. The power of the authority can be exercised.

I ask Deputies Ryan and Daly to formally bring any concerns that either of them have in regard to the conduct of the trustees to the attention of the Pensions Authority. I think Deputy Broughan or Deputy Shortall mentioned the very significant fall in the value of what was once a very large pension fund and the enormous deficit that opened up as a consequence of that falling value. I think everybody has recognised that.

I refer to the amendment put forward by Deputy Ó Snodaigh. Essentially, that amendment put in an alternative wind-up priority order. It gives first priority to awarding the full State pension. The pension fund legislation deals with the distribution of the occupational defined benefit pension scheme funds. There is actually no direct connection between the contributions made to benefits received from an occupational defined benefit scheme in the private sector and an actual payment of a State pension. I said previously that the provisions contained in section 48 of the Pensions Act, which set out how the assets of a scheme are distributed and the wind up of a scheme, have no impact on any entitlement to the State pension or the PRSI contributory system. The contributory principle, where there is a direct link between social insurance contributions made and resulting entitlement to a varying range of benefits and pensions that are payable as a right, is an underlying feature of principle of Ireland's pay related social insurance system.

The State pension contributory is paid from the Social Insurance Fund to any individual from the age of 66 who meets the qualifying criteria and has sufficient contribution. The rate of State pension payable is linked to the overall-----

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