Clare Daly (Dublin Fingal, Independent)
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38. To ask the Minister for Employment Affairs and Social Protection the progress on addressing problems in regard to the distribution of financial assets in a pension scheme (details supplied); and if she will make a statement on the matter. [50585/17]

Clare Daly (Dublin Fingal, Independent)
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I sympathise with the Minister as, like her, I am following so many pensions investigations and I am not sure what she thinks this question is about or even what my office thinks it is about. In my head, it covers two elements. The first is a progress report on the investigation sought by the Minister from the Pensions Authority into the Aer Lingus second supplementary pension scheme. It could also potentially address the review of the annuity matter we discussed in a Topical Issue some time ago.

Regina Doherty (Meath East, Fine Gael)
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Scheme trustees have duties and responsibilities under trust law, under other relevant legislation and under the Pensions Act 1990, as amended. The duties of pension scheme trustees include administering the trust in accordance with the law and the terms of the trust deed and rules. I had previously confirmed that the matter relating to the scheme we spoke about recently has been raised by my Department with the Pensions Authority. It has informed me that an examination of the scheme is being actively pursued. The Pensions Authority will assess if there has been a breach of any legal obligations and take any necessary action if such a breach is found. I am not in a position to tell the Deputy when this will happen, and I know that is probably frustrating. In fairness, the authority is doing a good deed for us and it is not within my gift to tell it to hurry up. The authority will revert as quickly as it can.

There is another matter that is not reflected in the question. I know the Deputy has some amendments to the Social Welfare Bill and I spoke to her colleague yesterday evening when we were debating the Bill. The amendments will be ruled out of order in regard to this Bill. They are not suitable for this Bill and they would be more appropriate for the social welfare and pensions Bill. I ask her to put down the amendments again to that Bill.

Clare Daly (Dublin Fingal, Independent)
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I thank the Minister. I suppose the reassurance that staff and members of the scheme want is to know the investigation is still being actively pursued. There is a worry about a time delay. I remind the House we were dealing with a case where a second supplementary pension scheme had €100 million in it was sitting there for two years, belonging to people who had retired in the mean time and other people who had a right to access those benefits. It was being bled by management charges, payments and so on, basically haemorrhaging value. The big concern for staff is that after pushing for assets to be distributed for almost two years, finally getting the most appalling distribution mechanism that anyone could have thought and putting a block on that, the danger is that the investigation may lead to moneys not being distributed for a further period. I ask that we keep the pressure on. It is probably the reason for this question. There are many people with entitlements who have been treated quite shabbily.

Regina Doherty (Meath East, Fine Gael)
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We requested the investigation at the Deputy's request. I am very happy to have done that. We saw this parliamentary question come in this week and we contacted the authority again, which gave us the assurance that the investigation is being actively pursued. I hope the Deputy appreciates that I am not in a position to give her a date on it, but we will keep in constant contact to ensure the matter is finalised.

Clare Daly (Dublin Fingal, Independent)
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I thank the Minister. There are broader matters linking to this scheme, the wind-up and annuities being purchased for pensioners. This morning, a joint life annuity allowing for 1.5% inflation per year would cost €37 for every €1 of pension. We discussed last week the need to seriously address that area. There is some form of consultation that the Department will initiate in that respect. It is incredibly urgent, given the number of pensioners who need to access funds, who are essentially being bled dry and whose schemes are losing money because of what needs to go to annuity purchases. The only winners in that are the big companies and so and it is to the detriment of others with the reduction of benefits in the scheme. We need an urgent review of all aspects of the area. Many of the issues with this scheme are linked to the so-called minimum funding standard and liabilities being calculated on annuity prices. This is quite urgent and we must progress the matter.

Regina Doherty (Meath East, Fine Gael)
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The Deputy knows I agree with her. The Pensions Act 1990 is the legislation that must be amended but the Taxes Consolidation Act allows flexible options. That is the area where what we are discussing must be reflected. I have written to the Minister to ask him to do so. When we launch the public consultation on pension reform, it will be the time to sit down and determine exactly what is in the best interests of the people the Deputy and I represent so we can make the changes reflecting what they want and need.