Tommy Broughan (Dublin North East, Labour)
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Question 174: To ask the Minister for Social and Family Affairs if she will undertake to amend the private investment profit system scheme in order that contributors to an organisation's pension scheme (details supplied) may avail of this scheme. [34396/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I presume that this question should refer to the Pensions Insolvency Payment Scheme (PIPS), currently 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, latest available information suggests that 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.

Question No. 175 answered with Question No. 161.

Question No. 176 answered with Question No. 109.

Question No. 177 answered with Question No. 129.