Paschal Mooney (Fianna Fail) | Oireachtas source

I move amendment No. 1:

In page 9, between lines 19 and 20, to insert the following:
“9. The Principal Act is amended by inserting a new section 48A as follows:“48A. A solvent firm shall not be allowed to close a defined benefit pension scheme except where the scheme has reached a minimum 90 per cent funding standard.”.”.

We tabled this amendment on Committee Stage. Again, we seek to impress upon the Minister the importance of ensuring that a solvent firm shall not be allowed to close a defined benefit pension scheme except where the scheme has reached a minimum 90% funding standard. Increasingly, solvent companies are refusing to put sufficient funds into their defined benefit pension schemes and, in many cases, they are walking away by paying out a reduced amount. The Waterford Crystal workers' case has been used continuously as an example, and we are still awaiting a High Court judgment on what will be the exact percentage. However, as I pointed out on Committee Stage, the UK precedent has been that they have paid 90%. On that basis, we believe it is vital that this amendment be accepted.