Richard Bruton (Dublin North Central, Fine Gael)
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Question 124: To ask the Minister for Social and Family Affairs the level of pension cover of craftsmen and general workers in the construction industry; the extent to which employers in the sector have complied with legal obligations in relation to pension cover for their employees; if pension funds in this sector meet requirements or are in deficit; and if a study has been undertaken of the extent to which returning employees as subcontractors is undermining the pension cover of workers in the industry. [28578/05]

Séamus Brennan (Dublin South, Fianna Fail)
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The quarterly national household survey for the first quarter of 2002 shows overall occupational and private pensions coverage in the construction industry at 35.8% for employees and 48.4% for those who are self-employed.

The main occupational scheme in the sector is the construction federation operatives pensions scheme. This scheme operates as a registered employment agreement under the Industrial Relations Acts. There is a statutory obligation on employers to register eligible employees in the scheme and to pay the necessary contributions. Compliance with the terms of the scheme is enforced through the Construction Industry Monitoring Agency, the Labour Court and the Department of Enterprise Trade and Employment.

The Pensions Board also has a role in the scheme in so far as compliance with the various aspects of the Pensions Act are concerned. The Pensions Board recently facilitated a report on the scheme in question in conjunction with the Department of Enterprise Trade and Employment. The report was undertaken by Mercers and it found that 80% of the estimated 80,000 eligible employees in the industry are covered by the scheme. However, the report does highlight the fact that an estimated 70,000 operatives are classed as self-employed and are therefore not eligible to join the scheme.

Pension schemes are required to certify to the Pensions Board at periodic intervals whether they satisfy the funding standard. This is a measure of whether the scheme would have sufficient assets to meet its liabilities if it wound up at a specified date. Schemes must also include a statement in their annual report, which must be made available to members and trade unions, from the actuary confirming whether or not they meet the funding standard. The construction federation operatives pension scheme has confirmed that it is not in deficit.