Mary Butler (Waterford, Fianna Fail) | Oireachtas source

I welcome the Bill. It provides that workers in defined benefit schemes would be protected from their employers attempting to wind up the scheme. Tonight's debate is the first opportunity for the Dáil to discuss this important topic and find a legislative solution to the problem that is clearly evident. In the past few years we have seen many large, financially solvent companies wind up their pension schemes and jeopardise the future pension payments of their workers.

The first case that comes to mind is that of Waterford Crystal. The Waterford Crystal workers were in that position and had to take their case to the European Court of Justice to win their appeal. Simply put, the workers alleged their defined benefit pension entitlements were not protected in 2009 when their former employer, Waterford Crystal, became insolvent and their defined benefit pension scheme wound up with a deficit of €110 million. Those circumstances culminated in the workers only receiving between 18% and 28% of their expected entitlements, which the European Court of Justice found did not amount to protection by the State. It is bad enough to lose one's job and be obliged to apply for jobseeker's benefit, but it adds insult to injury to find out that one's pension benefits are lost after paying into the fund for years - for up to 40 years for some Waterford Crystal workers.

The fight of the Waterford Crystal workers was long and protracted, with the European Court of Justice rejecting the Government's argument that the State contributory pension should be taken into account in assessing how much of the lost pensions should be made up following the insolvency of Waterford Crystal and its pensions fund in 2009. There is still a group of approximately 80 former employees of Waterford Crystal, who were employed on a contract rather than a full-time basis, who have yet to be paid under the terms of the pensions settlement negotiated between the Government and the Unite trade union. I appeal to the Minister to bring this process to finality and to end the pensions saga that has been ongoing since 2009 for the workers of Waterford Crystal.

I support the Bill. Employees need greater pension protection. I have spoken about the Waterford Crystal workers, but there are many more. The case of Independent News & Media was extensively reported before Christmas 2016. Independent News & Media pensioners lost approximately 40% of their entitlements in a 2013 restructuring plan under which the company undertook to put €5.6 million into the scheme for ten years. The recent decision taken by the management of Independent News & Media to wind up the defined benefit scheme means the members will suffer a further reduction of approximately 30% in their remaining pensions benefits. It has been reported, although it is denied by Independent News & Media, that the wind up of the defined benefit scheme will strengthen the balance sheet of Independent News & Media and will result in ongoing savings every year. However, the full extent of the savings will largely depend on any deal reached between Independent News & Media and the trustees of the defined benefit scheme.

There is a weakness in Irish legislation that allows healthy sponsors to walk away from defined benefit pension plans by shutting them down without creating a high priority debt on the employer. It is hard to credit that a financially solvent company would be allowed wind up its pension scheme, thereby reducing the pension entitlements of its workers. Companies have an obligation to treat their employees fairly and equitably. The Bill aims to address the issue of solvent companies closing defined benefit pension schemes to the detriment of the scheme's workers.

Profitable firms should not be allowed to walk away from a defined benefit scheme. I reiterate my support for the scheme.

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