Jerry Buttimer (Cork South Central, Fine Gael)
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To ask the Minister for Social Protection if the 1980 EU Insolvency Directive is applicable to a person (details supplied) in County Cork; and if she will make a statement on the matter. [41357/12]

Jerry Buttimer (Cork South Central, Fine Gael)
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To ask the Minister for Social Protection if she will outline the pension entitlements of a person (details supplied) in County Cork; if the 1980 EU Insolvency Directive is applicable to the person; and if she will make a statement on the matter. [41368/12]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 271 and 273 together.

The purpose of the Insolvency Payments Scheme, which operates under the Protection of Employees (Employers’ Insolvency) Act, 1984, which, in turn, derives from EU Council Directive 987/80, is to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer. The employer referred to in this instance does not meet the definition of insolvency for the purposes of the scheme.

The entitlements covered by the scheme include wages, holiday pay, sick pay, payment in lieu of minimum notice due under the Minimum Notice & Terms of Employment Acts, 1973-2001, and certain pension contributions. Various other statutory awards made by the Employment Appeals Tribunal (EAT), Rights Commissioners, etc., are also covered by the Scheme.

The scheme does not cover pension entitlements but it does cover pension contributions which had been deducted from employees and not paid into the pension scheme and employer contributions due to the pension scheme where these contributions fall within a period of 12 months prior to the date of insolvency.

Occupational pension schemes in Ireland are normally established under Trust Law and have a set of guidelines called a trust deed which sets out the rules that govern how the scheme is operated. The pension entitlements of all members of the scheme will be set out in the trust deed. A mandatory entitlement to preserved benefit was introduced in the Pensions Act 1990 which came into force on the 1 January 1991. Unfortunately in this case the person’s employment terminated before the Pensions Act came into force and is not covered by the provisions of the Act.

The trustees of the pension scheme will be able to inform the person concerned as to what benefit, if any, he is entitled to under the rules of the scheme. If the person has difficulty in ascertaining who the trustees of the scheme are, he should contact the Pensions Board who will be able to provide assistance.