Róisín Shortall (Dublin North West, Labour)
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Question 157: To ask the Minister for Finance the progress made to date in developing the pension insolvency payment scheme. [34584/09]

Róisín Shortall (Dublin North West, Labour)
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Question 158: To ask the Minister for Finance the progress made to date in developing a pensions insolvency minimum guarantee scheme. [34585/09]

Róisín Shortall (Dublin North West, Labour)
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Question 159: To ask the Minister for Finance the extent to which workers at a company (details supplied) will be covered by the pensions insolvency minimum guarantee scheme; and when they can expect to start receiving benefits from the scheme. [34586/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 157 to 159, inclusive, together.

The Social Welfare and Pensions Act 2009 provides for a package of measures to address the difficulties being faced by pension schemes, one of which is the introduction of a Pensions Insolvency Payment Scheme. Section 22 of the Act 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.

One of the main aims of the scheme is to support pension schemes in the greatest need on a cost neutral basis for the Exchequer. For that reason 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.

Work on the necessary regulations to give effect to PIPS is well advanced, and it is my intention that they would be brought forward shortly, allowing for the introduction of the scheme in early 2010. It will then be 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 winding up in deficit.

In the document Further Measures to Support National Recovery through Social Partnership (June 2009), the Government tabled a number of proposals including the establishment of a Pensions Insolvency Minimum Guarantee Scheme, which would provide for minimum payments to those schemes participating in PIPS, subject to an overall cap. The Deputy will be aware that discussions are continuing with the Social Partners on a wide range of economic and budgetary issues.