Written answers

Tuesday, 22 April 2008

Department of Enterprise, Trade and Employment

Pension Provisions

9:00 pm

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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Question 253: To ask the Minister for Enterprise, Trade and Employment the position regarding requirements that are in place for people employed in the construction industry to be part of an industry wide pension scheme; and if he will make a statement on the matter. [15212/08]

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 any particular pension scheme to apply but rather sets out the general criteria within which any such scheme should operate.

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. Enforcement of the provisions of a Registered Employment Agreement may be effected by direct complaint to the Labour Court. A trade union or an employer 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.

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.

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