Written answers

Thursday, 18 October 2007

Department of Enterprise, Trade and Employment

Pension Provisions

5:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 164: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the fact that there are problems relating to the payment of contributions for construction workers and the lack of pension cover for this category of worker; and if he will make a statement on the matter. [24557/07]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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The Construction Industry (Pension Assurance and Sick Pay) Registered Employment Agreement (REA) requires employers in the construction sector to become and remain a party to a contributory pension scheme approved by the Revenue Commissioners and sets out the conditions upon which pension and mortality payments are payable and the associated minimum amounts and benefits. The REA does not specify the particular pension scheme to apply but rather sets out the general parameters within which any such scheme should operate.

The Construction Workers Pension Scheme has been established on foot of the Registered Employment Agreement. While it is not a legal requirement for employers and employees in the construction industry to pay into this pension scheme, it is a legal requirement that employers provide for pension, mortality and sick benefits for those workers to whom the REA applies. The conditions upon which such pension, mortality and sick pay benefits are payable and the amounts thereof must not be less favourable than those which are set out in the REA. The Scheme is administered and monitored on behalf of employers and employees by the Construction Industry Monitoring Agency (CIMA).

Enforcement of the provisions of a Registered Employment Agreement may be effected by direct complaint to the Labour Court. A trade union may complain to the Labour Court that a particular employer is not complying with a Registered Employment Agreement. If, after investigating a complaint, the Court is satisfied that an employer is in breach of a Registered Employment Agreement the Court may by order direct compliance with the agreement. Failure to comply with such an order is an offence punishable by a fine. In exercising its powers in this regard, the Court can request the assistance of the National Employment Rights Authority in inspecting employer records to assess compliance.

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