Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 281: To ask the Minister for Social and Family Affairs the reason she has not applied the pension insolvency protection scheme to the pension scheme of a company (details supplied); and if she will make a statement on the matter. [32088/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Pensions Insolvency Payments Scheme (PIPS) is being established by the Minister for Finance on a pilot basis for a three year period.

This scheme is intended as an option of last resort and a social protection measure to assist pension schemes where the sponsoring employer is insolvent and the pension scheme is being wound up in deficit. The PIPS is intended to make it cheaper to pay for the pensions of retired pension scheme members, so that more money is available for the pension benefits of those who have not yet retired. This scheme uses the definition of insolvency which applies to the insolvency payments scheme administered by the Department of Enterprise Trade and Employment and as set out in the Protection of Employees (Employers Insolvency) Act 1984. The company mentioned by the Deputy will not qualify for the scheme as it is not an insolvent company as defined in the 1984 Act.