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

I propose to take Questions Nos. 75, 113 and 115 together.

The general scheme of the social welfare and pensions Bill 2017 - now the Social Welfare, Pensions and Civil Registration Bill 2017 - was published in May 2017 and contained a number of key measures relating to defined benefit pension schemes. It is intended that these measures will act to support existing provisions in the Pensions Act by providing for further protection for scheme members' benefits and enhance employer responsibilities for their schemes.

In July 2018, Government approval was obtained to draft additional provisions to be included in the Bill on Committee Stage, including provisions relating to defined benefit schemes. In developing these, it is essential to recognise the current pension landscape in Ireland in order that a balanced, proportionate approach is developed and that unintended negative consequences do not arise.

Under existing pensions law, there is no legislative obligation on the employer to make contributions to a scheme. The provisions of this Bill, however, will introduce a new regime into the Pensions Act 1990 that, among other things, will ensure that an employer cannot “walk away” at short notice from the pension scheme it is supporting by providing a 12-month notification, and will enable the Pensions Authority to make a funding obligation direction specifying payments to be made by a sponsoring employer to the pension scheme where no agreement is reached, within a specified time period, to resolve a funding deficit.

The defined benefit pension provisions are very technical and involve complex policy issues. It has been necessary to consult and obtain numerous legal advices from the Office of the Attorney General on various aspects of this policy to achieve a resilient solution. When these matters have been resolved and amendments approved by the Government, I will request an early date for Committee Stage.

Many of the provisions contained in the EU directive on institutions for occupational retirement provision, IORP II, will also support positive reform of the Irish occupational pensions sector. My officials, together with the Pensions Authority, are working on the transposition process to ensure the necessary amendments to existing laws, regulations or administrative provisions will be made to give full effect to the directive. I hope this clarifies the matter.

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