Michael McGrath (Cork South Central, Fianna Fail)
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288. To ask the Minister for Social Protection if it is envisaged that the pension schemes in respect of which a section 50 application has been recently approved by the Pensions Board will come under the provisions of the Social Welfare and Pensions (No. 2) Bill 2013; and if she will make a statement on the matter. [53064/13]

Joan Burton (Dublin West, Labour)
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Section 50 of the Pensions Act permits the Pensions Board on application from the trustees of a defined benefit pension scheme to approve a reduction in the benefits of current and former scheme members and/or the post-retirement increases in benefits where a scheme does not meet the Funding Standard. The provisions in section 11 of the Social Welfare and Pensions (No. 2) Bill 2013 broadens the categories of benefits which can be considered in such an application to include a portion of the benefits payable to pensioners.

The provision in this Bill allows the trustees of a scheme to consider a reduction in pension benefits of:

- up to 10% where the annual rate of pension is between €12,000 and €60,000 and

- up to 20% where the annual rate of pension is greater than €60,000.

These new provisions will apply to applications which have been approved by the Pensions Board scheme after the date of the passing of Social Welfare and Pensions (No.2) Act 2013.