Gerald Nash (Louth, Labour) | Oireachtas source

I thank Deputy Clare Daly for tabling this important question. I fully appreciate the concerns of retired and deferred members of pension schemes whose schemes are being restructured, particularly where such restructuring may have an impact on existing or potential pension benefits. In this regard, the question of pensioner groups having access to the State’s industrial relations machinery in pursuing pension scheme grievances is an issue in which I have a deep interest and to which I have given careful consideration. In so doing, I have borne in mind that the industrial relations system in Ireland is voluntary in nature as regards access to both the Labour Relations Commission and the Labour Court. Any change to that principle which would put in place a mandated right to be part of the process would fundamentally alter the conduct of industrial relations. As it stands, where changes to pension schemes are negotiated at company level, whether as a result of a crisis in the scheme or otherwise, the outcome of that engagement cannot, of itself, change the pension scheme. Rather, any proposed changes to the scheme are effected through the trust deeds and rules of the scheme and are at the discretion of the parties so designated in the rules or deeds of the scheme. In my view, it is within that framework, rather than through the State’s industrial relations machinery, that a collective approach would be most effective.

In terms of changes to pension schemes generally, the trustees of a particular pension scheme are required by law to act in the best interests of all the members, be they deferred members or pensioner members. Until recently, this has been done on an individual basis. The Tánaiste and Minister for Social Protection has recently provided for the recognition by trustees and the Pensions Authority of groups representing the interests of retired and deferred scheme members of a particular pension scheme. The required revised section 50 guidance has been published by the Pensions Authority. From now on, the trustees of a pension scheme are required to notify the groups representing the interests of retired and deferred scheme members where the trustees of a scheme propose to apply to the Pensions Authority to restructure scheme benefits under section 50 of the Pensions Act. This notification affords the representative group an opportunity to make a submission to the trustees of the scheme with regard to such proposals. In addition, the Pensions Authority is now required to notify groups representing the interest of scheme members where the Pensions Authority proposes either to issue a unilateral direction under section 50 of the Pensions Act to the trustees of a scheme to restructure scheme benefits or to wind up a pension scheme under section 50B of the Pensions Act. This notification affords the representative groups an opportunity to make representations to the Pensions Authority in respect of such proposals. Furthermore, in such situations, the representative group also will have the option of making an appeal to the High Court on a point of law regarding such proposals.

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