Regina Doherty (Meath East, Fine Gael) | Oireachtas source

As we are all aware, all Irish defined benefit pension schemes have a rule that allows the employer to cease contributions, usually after a notice period. There is no legislative obligation on an employer to make contributions or any further liability on that employer where contributions cease, nor is there an obligation on an employer to give notice to members or to consult in advance of ceasing contributions. Accordingly, neither the Pensions Authority nor I have the power under legislation to intervene to compel an employer to continue to make contributions into a scheme.

Even when a scheme is closed to new members or to the future accrual of benefits, the sponsoring employer role continues in respect of that scheme. Where a defined benefit scheme is closed to future accrual of benefits, which is not the same as being wound up, the scheme remains subject under EU and Irish law to the funding standard requirements and to the Pensions Act in general. It must continue to satisfy minimum funding standards into the future. It is important to note that the closure of a defined benefit scheme to future accrual does not mean its members will not receive a pension in line with the benefits that they accrued before the date of closure.

While it is not appropriate for me to comment on individual pension schemes, I am aware of the announcement of the closure of the Irish Life pension scheme to future accrual. I understand that the scheme is financially secure and its assets adequately cover all liabilities that would arise in the event of the trustees taking the decision to wind up the scheme.

As the Deputy is aware, I am finalising work to introduce extra protections for members of defined benefit pension schemes. I hope to be in a position to table those necessary legislative amendments on Committee Stage at the earliest possible opportunity. I hope this clarifies the matter for the Deputy.

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