Written answers

Tuesday, 8 April 2008

Department of Enterprise, Trade and Employment

Pension Provisions

9:00 pm

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 258: To ask the Minister for Enterprise, Trade and Employment the steps he will take in view of the fact that the construction workers pension scheme is compulsory to bring all registered employers in the construction industry into the scheme; his views on whether the monitoring of the scheme has broken down in view of the figures of unregistered employers operating in the construction industry; and if he will make a statement on the matter. [12998/08]

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 259: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the fact that The Construction Industry Pension Assurance and Sick Pay Registered Employment Agreement requires employers in the construction sector to become and remain a party to a contributory pension scheme approved by the Revenue Commissioners; his views on the discrepancy between the number of people registered with the Revenue Commissioners and those registered with the Construction Workers Pension Scheme; if this is the case, his further views on whether a discrepancy exists between the cost to employers who are compliant with the scheme, as against the cost to those who are not; and if he will make a statement on the matter. [13000/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 258 and 259 together.

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 any particular pension scheme to apply but rather sets out the general criteria within which any such scheme should operate. The number of employers in the construction sector registered with the Revenue Commissioners is a matter for the Revenue Commissioners.

The Construction Workers Pension Scheme (generally referred to as CWPS) 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 particular scheme, it is, as already mentioned, 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 CWPS is an independently run occupational scheme. Accordingly, my Department does not have the registration details requested by the Deputy. Neither does my Department have details of the numbers of people registered with the Revenue Commissioners.

I have had no indication that monitoring of the scheme has broken down. As I understand it, 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. These safeguards are in place to ensure the satisfactory operation of the pension schemes and to ensure that non-compliant employers are discovered and do not benefit in any way from their avoidance of their obligations.

I understand that the Construction Industry Monitoring Agency (CIMA) which was established by the Construction Industry Federation and ICTU monitors compliance with the REA with a view to ensuring that employers register their employees in the Scheme and pay the weekly contributions on the employees' behalf. CIMA engages trade union monitors to follow up on cases of non-compliance and to bring proceedings where required.

As a further element of enforcement, The Social Welfare and Pensions Act 2007 provides for the sharing of relevant employment data between the Offices of the Revenue Commissioners, The Minister for Social and Family Affairs and the Minister for Enterprise, Trade & Employment. This legislation enables NERA's inspection services to join with inspectors from the Department and the Revenue Commissioners to form Joint Investigation Units and exchange information. This will facilitate further additional inspection and enforcement activity in regard to compliance with the REA, as necessary.

I understand that under the Pensions Act 1990, the Pensions Board has power to investigate the state and conduct of Irish Pension schemes so as to ensure that all involved comply with their obligations. This provides an additional layer of enforcement and protection. The Deputy might be aware of a recent case where the Pensions Board took a company in the construction sector to Court to require it to pay arrears of pension contributions to a scheme and succeeded in securing a judgement in the High Court directing the company to pay up €186,000 in arrears of contributions to CWPS.

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 260: To ask the Minister for Enterprise, Trade and Employment the number of employers currently registered with the construction workers pension scheme, formerly know as the construction federation operatives scheme; and if he will make a statement on the matter. [13001/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Construction Workers Pension Scheme (CWPS) is an independently-run occupational scheme. Accordingly my Department does not have the registration details requested by the Deputy. These details are available from the CWPS, which can be contacted at Canal House, Canal Road, Dublin 6.

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