Liz McManus (Wicklow, Labour)
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Question 48: To ask the Minister for Social and Family Affairs the steps he has taken or plans to take arising from criticism by the Pensions Ombudsman of what he called the theft by employers of pension contributions deducted from employees but not remitted to pension schemes, particularly in the construction sector; and if he will make a statement on the matter. [7908/07]

Brian O'Shea (Waterford, Labour)
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Question 74: To ask the Minister for Social and Family Affairs the steps he will take arising from criticism by the Pensions Ombudsman of what he called the theft by employers of pension contributions deducted from employees but not remitted to pension schemes, particularly in the construction sector; and if he will make a statement on the matter. [7912/07]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 48 and 74 together.

The Construction Federation Operatives Pensions Scheme (now known as the Construction Workers Pension 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 relation to the scheme in so far as compliance with the various aspects of the Pensions Act is concerned, and there are a number of provisions in the Act relating to the remittance of pension contributions to scheme trustees.

It is important that employees are in a position to monitor the deduction and remittance of their contributions so that any problems in this area will be apparent as early as possible. Accordingly, employers are required to ensure that a statement is issued to employees at least once a month, and to the trustees or the person to whom the employer remits contributions direct, specifying the amount of contributions remitted on their behalf to trustees.

In relation to defined benefit schemes this statement should specify the amount of employee contribution which has been remitted. In relation to defined contribution schemes the statement should specify the amount of both the employee and employer contribution remitted. This disclosure can be made via the payslip. The actual amount remitted during the period to which the statement relates may be specified on the payslip or, alternatively, where the amount of employee deduction and employer contribution which were specified on the previous payslip have since been remitted, a statement to that effect may be included on or with the payslip.

Employers who deduct pension contributions from employees and who fail to remit these contributions to the scheme trustees are in breach of Section 58A of the Pensions Act. The Pensions Board will investigate all such cases brought to its attention or, alternatively, it is open to a person to make a complaint to the Pensions Ombudsman. The Pensions Ombudsman has, I understand, referred six such cases from the construction sector to the Pensions Board for further investigation and action and these are currently being examined. The primary aim must be to ensure that the contributions are paid so that pension entitlements are not affected. The Board will also consider prosecuting the employers in such cases where there is sufficient evidence available to support such a prosecution. In 2006, almost a quarter of new investigations initiated during the year related to complaints against employers in the construction industry.

In general I am satisfied that the necessary legislation is in place to deal with cases where contributions are not remitted to scheme trustees and that any such cases brought to attention will be fully investigated by the appropriate authorities. I will, however, keep the matter under review.