Róisín Shortall (Dublin North West, Labour)
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Question 125: To ask the Minister for Finance the position regarding the introduction of a pension insolvency minimum guarantee scheme. [19314/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In the document "Further Measures to Support National Recovery through Social Partnership" (June 2009), the Government tabled a number of proposals in relation to pensions including the establishment of a Pensions Insolvency Minimum Guarantee Scheme (PIMS), which would provide for minimum payments to those schemes participating in the Pension Insolvency Payments Scheme or PIPS, subject to an overall cap. The Government has made no decision about the implementation of this scheme. The PIPS has been introduced by the Government and is being run on a pilot basis for three years. The PIPS is a targeted initiative designed to provide special assistance to certain defined benefit pension schemes. The terms of the scheme are contained in the Social Welfare and Pensions Act 2009 and require, among other things, that the scheme be operated cost-neutrally for the Exchequer and be available to pension schemes that are winding-up in deficit with an insolvent employer. Where a pension fund is in deficit and the parent company is insolvent, pension trustees will have the option of buying annuities under PIPS - the Government will pay the pensions purchased by the capital sum paid into the Exchequer by the trustees. It is open to any pension scheme that meets the criteria to apply to participate. An explanation of PIPS, including details of the application procedure, is contained on the Department of Finance web site.