Finian McGrath (Dublin North Central, Independent)
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Question 135: To ask the Minister for Finance if he will support a matter (details supplied). [20402/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 22 of the Social Welfare and Pensions Act 2009 provides that the Minister for Finance may, after consultation with the Minister for Social and Family Affairs, make a Pensions Insolvency Payment Scheme (PIPS) providing for the payment of monies to or in respect of relevant pensioners. The Act does not provide for the inclusion or exclusion of any particular pension scheme in PIPS. One of the main aims of the scheme is to support pension schemes in the greatest need. For that reason, and having regard to a number of factors, the Government decided to offer PIPS to insolvent pension schemes of insolvent companies, that is, companies which may not be in a position to assist schemes in meeting the original pension commitment made to pensioners.

It is my intention to bring forward the necessary regulations giving effect to PIPS shortly. Once that has been done, it is open to any pension scheme that meets the criteria to apply to participate. The principal qualifying conditions for PIPS are that the sponsoring employer must be insolvent (in accordance with the definition used in the Protection of Employees (Employers' Insolvency) Act 1984) and the defined benefit pension scheme must be in deficit.