Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

As the Deputy is aware, the decline of defined benefit pension schemes accelerated during the financial crisis to the extent that the whole pension sector was possibly at risk. In recent years, the Government has amended pension legislation to protect the pension sector and ensure fairer and more equitable outcomes for all members of schemes.

Neither the Minister for Social Protection nor the Pensions Authority has the power under legislation to intervene to freeze the winding up of a scheme or to compel the employer to make contributions to a scheme. Almost all Irish defined benefit schemes have a rule that allows the employer to cease contributions, usually after a notice period. There is no legislative obligation on the employer to make contributions and no further liability on the employer where contributions cease. Neither is there an obligation on the employer to give notice to members or to consult in advance of ceasing contributions. However, in the case where a restructuring of benefits is proposed, pensioners, deferred scheme members and unions must be kept informed by trustees. Furthermore, changes made in 2015 require trustees to notify groups representing the interests of pensioners and deferred scheme members in a scheme in such a situation.

The Department and the Pensions Authority are working on proposals for the reform and simplification of pensions, the purpose of which is to impose higher standards on all occupational schemes. Standards in respect of pension schemes will be further enhanced by the transposition of the new IORPS II directive within the next two years.

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