Seán Sherlock (Cork East, Labour) | Oireachtas source

I move amendment No. 39:

In page 88, between lines 17 and 18, to insert the following: “Hindering the displacement of occupational pension schemes

129. An employer shall not wind up or freeze a qualifying occupational pension scheme in place after the commencement of this Act for a period of 10 years.”.

In order that I am ad idem with the Leas-Cheann Comhairle, this amendment relates to the issue of hindering the displacement of occupational schemes. It is a repeat of the Committee Stage amendment. In essence, we are saying that we all support the move to auto-enrolment. That is self-evident. We recognise that the current voluntary approach to pension savings has failed. In putting forward the amendment, we want to seek to prevent employers from winding up or freezing a good workplace pension scheme for the duration of the roll-out of auto-enrolment. We want to ensure there is no displacement of pre-existing pension schemes.

I will again quote the Minister's response when she did not accept the amendment on Committee Stage. She expressed empathy for the position but stated:

However, the proposed amendment cannot be incorporated into the AE Bill at this time as it is subject to ongoing legal advice. The preliminary legal opinion suggests that such a provision would be unconstitutional with regard to infringing the property rights on the right to earn a livelihood of employers.

From my contact with the Irish Congress of Trade Unions, which has long been a vocal champion of auto-enrolment, it is calling for firewall provisions to protect against employers responding to the cheaper pension auto-enrolment option by closing down good workplace pensions. That is essentially what the amendment is about. We just want to put a firewall in place to ensure that there is no diminution of those pre-existing pensions.

On Committee Stage, the Minister told us the proposed amendment could not be incorporated into the Bill at that time because it was subject to ongoing legal advice. I withdrew the amendment with a view to the Minister expanding on the legal advice. I now seek some expansion on that legal advice for the record of the House. It would be very informative for me as the proposer of the amendment and for the wider community of people watching in who have a very particular interest in this, especially the Irish Congress of Trade Unions.

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