Joan Burton (Dublin West, Labour)
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Question 862: To ask the Minister for Social and Family Affairs her view on the possibility for inclusion of the pension scheme of a company (details supplied) under the pensions insolvency payment scheme; and if she will make a statement on the matter. [33192/09]

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.

As the Deputy knows, some 90% of defined benefit schemes are currently in deficit. Under the Pensions Act, trustees of these schemes must submit a funding proposal to the Pensions Board to ensure that the financial position of the scheme recovers over time. The vast majority of underfunded schemes are working with the Pensions Board to comply with the pensions legislation in this regard. I have no plans, therefore, to extend the qualification criteria for PIPS to cover companies which do not meet the definition of insolvency.

Róisín Shortall (Dublin North West, Labour)
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Question 863: To ask the Minister for Social and Family Affairs the justification for the €53.20 difference between the amount that is awarded to the spouse of a pensioner depending on whether they are under or over 66 years of age. [33240/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The increase for a qualified adult (under 66 years) on a full rate state pension contributory is €153.50 per week, compared to €206.30 for a qualified adult aged 66 and over, which is a difference of €52.80 per week.

Traditionally, an additional increase has been paid for qualified adults who have reached state pension age, in recognition of the fact that these persons are no longer of working age. The difference between the level of under-66 and over-66 increases for qualified adults has grown in recent years on foot of a Government commitment to raise the increase for a qualified adult for spouses and partners (age 66 and over) of contributory pensioners to the level of the state pension (non-contributory). A number of special increases were given over several Budgets in pursuit of this aim. The increase for a qualified adult now stands at over 94% of the target.