Dáil debates

Wednesday, 11 November 2015

Topical Issue Debate

Pension Provisions

2:00 pm

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour) | Oireachtas source

I thank the Deputy for her remarks on the work that Mr. Liam Daly and his team are doing locally. I also acknowledge the work of Unite and the Labour Relations Commission. In addition, I know Deputy Conway has constantly raised this issue, if not daily then certainly weekly in recent years.

The mediated agreement for the former Waterford Crystal workers, which covers 1,774 scheme members, provides for the payment of a tax-free once-off lump sum of €1,200 for every year of scheme service, not exceeding 40 years, plus fortnightly payment of moneys in respect of pensionable service which is payable from the normal retirement date of the scheme members. To date, 1,574 lump sum payments have been authorised totalling €42.1 million. Work is ongoing in the Department of Social Protection to finalise payment of the remaining lump sums. This matter is being prioritised.

In tandem with this, officials of the Department are working on putting in place the administrative arrangements to facilitate the payment of moneys in respect of pensionable service. Given that these pension payments will be in place for decades to come, it is essential that appropriate operational and system arrangements are put in place for their ongoing maintenance and payment. I am advised that immediate action is required in respect of approximately 250 scheme members, or their spouses, or personal representatives in the case of deceased members, who have reached retirement age since the date of the wind up of the schemes in March 2009.

Of the cases requiring immediate attention, the Department is finalising arrangements to make actuarially calculated payments to the personal representatives of deceased scheme members who had not reached pension age, which comprise approximately 20 cases. It is anticipated that these payments will be made in late November or early December. Once paid, no further payments will arise in this small number of cases.

With regard to the arrangements for all other cases, officials of the Department have been in ongoing communication with officials of the Department of Finance and the Department of Public Expenditure and Reform in addition to other State agencies such as the national shared services office, the Paymaster General pensions unit and PeoplePoint to explore the various options to facilitate the pension payments. The Department of Social Protection has engaged with other Departments to put in place the necessary administrative and payment functions as a matter of urgency and is seeking to include this within the normal payroll and pension payment arrangements. In this context, the shared services model is the preferred option for the payment and ongoing maintenance of pension payments.

Given the complexity involved in finalising the payment arrangements, I am not in a position to advise the Deputy as to a definitive completion date. Notwithstanding this, it must be emphasised that it is a matter of priority, both for the Tánaiste and the Department, and it is hoped that the payment of pensions will commence in the coming months. I am assured that every effort is being made to get the pension payments progressed as quickly as possible.

The Deputy has raised this issue not only with me but also with the Tánaiste. It is a matter of urgency and we will work tirelessly with other Departments to try to resolve any outstanding difficulties. The Deputy can rest assured that we will do everything we possibly can to ensure all those payments are put in place. It is important, however, that the payment arrangements are made on a sustainable model. Pension payments will be made over several decades, so it is important we get this right from the beginning. There must be no interruption of services as a result of the preparation work not being done properly for the commencement of those payments. I reassure the Deputy that in cases where payments are to be backdated, that will happen.

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