Brian Stanley (Laois-Offaly, Sinn Fein) | Oireachtas source

I am concerned to ensure the pension rights of workers transferring to Irish Water are protected, especially for workers who do not have large salaries. I note that section 9(1)(b) proposes to insert the following paragraph, "members of the staff of a local authority (unless their contracts of employment provide for a defined contribution scheme)." Will the staff who transfer to Irish Water enjoy defined benefits?

The section and proposed amendments refer to Irish Water not having any financial liability or responsibility in respect of a scheme prepared by the Minister under subsection (2). This statement is a cause of concern for employees, especially manual workers who will never receive a great pension. The value of local authority pensions is being eaten up by the universal social charge and other deductions. I am concerned that the pension rights of employees, specifically those who have salaries of less than €50,000, will be placed in jeopardy or made less secure. I ask the Minister to clarify the position.

While I do not wish to stray from the amendment, the people who stood to receive the greatest benefit from the bonus scheme were obviously holding the hand of the person who drafted the scheme because they were giving themselves bonuses of 17% and 18%, while lower paid workers were set to receive 8% of a much small amount. If this culture is reflected in the pension scheme, people will not have confidence in it. Many Irish Water workers will have salaries of less than €30,000 and certainly less than €25,000 net. Many will be also dependent on family income supplement. It is important, therefore, that their small pension entitlements are protected and, if possible, enhanced.

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