Michael Noonan (Limerick City, Fine Gael)
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The Statutory Instrument under the Social Welfare and Pensions Act 2009 giving effect to the Pensions Insolvency Payment Scheme (PIPS) was signed by the then Minister for Finance on the 18th January 2010 and came into operation from 1st February 2010. It is a pilot scheme and will be in operation for three years. I can confirm that an application to the Pension Insolvency Payment Scheme from the Waterford Wedgwood pension scheme trustees has been received and is under consideration. Discussions have taken place with the trustees and staff representatives about a number of aspects of the application. I hope to be in a position to respond to the application shortly.

The purpose of the PIPS scheme is to give a better return to those pension funds in deficit where the employer has also become insolvent. Once a pension scheme has applied, my Department requests the NTMA to quote a cost for providing annuities to existing pensioners. It is envisaged that the cost to the pension fund would be less than buying an annuity on the open market. The savings made from securing the pensioners benefits through the State rather than through an insurer should then be put towards the pensions for active and deferred members and will help reduce the shortfall in the scheme. In this way the PIPS scheme will benefit those who are not already on pension, irrespective of age.