Joan Burton (Dublin West, Labour) | Oireachtas source

Where a proposal is made to reduce or restructure benefits, trustees must have undertaken a comprehensive review of the scheme with a view to its long-term stability and sustainability. Such a review includes asking the employer for contributions sufficient to ensure scheme funding and the employer must have declined to pay those contributions. Trustees must notify in writing the scheme members, any persons receiving benefits from the scheme and the trade union or representative groups representing scheme members before they make an application to reduce benefits to the Pensions Authority. Once notified, the scheme members or those representing the scheme members are entitled to make written submissions to the Pensions Authority which will consider any submission prior to making a direction.

As Deputy O'Dea mentioned earlier, groups representing the interests of pensioners and deferred scheme members have a right to appeal a direction by the Pensions Authority to the High Court on a point of law. Earlier this year, I approved measures to facilitate engagement between the trustees of a pension scheme and groups representing the interests of pensioner and deferred scheme members. The changes to regulations require the trustees to notify groups representing the interests of pensioner and deferred scheme members in situations where the Pensions Authority is proposing to issue a unilateral direction under section 50 of the Pensions Act to restructure scheme benefits or to wind up a pension scheme under section 50B. This requirement will afford the representative group an opportunity to make a submission to the Pensions Authority on such proposals.

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