Michael McGrath (Cork South Central, Fianna Fail)
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402. To ask the Minister for Social Protection if she will consider providing a right of audience for pensioners in the context of the changes being introduced under the Social Welfare and Pensions (No. 2) Act 2013; and if she will make a statement on the matter. [1643/14]

Joan Burton (Dublin West, Labour)
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The Social Welfare and Pensions (No. 2) Act 2013 amends the Pensions Act to change the manner in which the resources of a pension scheme are distributed on the wind up of a scheme and to broaden the options available to the trustees of a scheme when considering a restructure of scheme benefits. These changes essentially provide for the sharing of the risk of scheme underfunding across all scheme beneficiaries. The issue of how these changes might be applied will be a matter for the trustees of the scheme who are required under trust law to act in the best interest of all scheme beneficiaries.

Any consideration of a restructure of pension scheme benefits must comply with the provisions in the Pensions Act and with guidance issued by the Pensions Board. This guidance makes provision for the notification of all pensioners in advance of any application to the Pensions Board to restructure scheme benefits. In such circumstances a pensioner will have at least one month to make a submission to the trustees of the scheme in relation to such a proposal. The Pensions Board must be satisfied that all the provisions in the guidance are complied with before the Board will consider issuing a notice to restructure scheme benefits.

The consultation process which preceded the publication of the Social Welfare and Pensions (No. 2) Bill, 2013 included engagement with representatives of pensioners, the pensions industry, employers and trade unions. Written submissions were also sought from these stakeholder groups. The output from this process informed the legislative proposals.

The matter of representation by pensioner groups in consideration of a change to scheme benefits could also be considered in a broader industrial relations context. In this regard, I have written to the Minister for Enterprise Trade and Innovation and my officials have recently met with pensioner representatives on this matter.