Brian O'Shea (Waterford, Labour)
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Question 267: To ask the Minister for Finance his proposals to assist former employees of a company (details supplied) in regard to the difficulties they have encountered with their pension fund; and if he will make a statement on the matter. [33323/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 22 of the Social Welfare and Pensions Act 2009 provides that I, as Minister for Finance may, after consultation with the Minister for Social and Family Affairs, make a Pensions Insolvency Payments Scheme (PIPS).

PIPS is a cost-neutral Exchequer scheme offering payments in cases where a defined benefit pension scheme is winding up in deficit and the sponsoring employer becomes insolvent — the "double insolvency" criterion. Within the constraint set by the statutory requirement that it be cost-neutral, PIPS will provide trustees with the opportunity to purchase pensions at a discounted rate as a special support for pensioners in the absence of a solvent employer.

Work on the scheme is well advanced and it is my intention to bring forward the necessary regulations giving effect to PIPS shortly. Once that has been done, it is open to the trustees of any pension scheme that meets the criteria to apply.