Finian McGrath (Dublin North Central, Independent)
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39. To ask the Minister for Social Protection the position regarding a pension matter (details supplied); and if she will make a statement on the matter. [34899/14]

Joan Burton (Dublin West, Labour)
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You will be aware that a number of changes were made to the Pensions Act in recent years to assist both the employers and the trustees of defined benefit pension schemes respond to the funding difficulties encountered by many schemes at this time. The Pensions Act was amended in 2009 to broaden the options available to the trustees of a defined benefit pension scheme in any consideration of a restructure of scheme benefits under section 50 of the Act to include the benefits of deferred scheme members and post retirement increases in pension benefits. Prior to the 2009 Act, only the benefits of active scheme members could be considered in a restructure of scheme benefits. The Social Welfare and Pensions (No. 2) Act 2013 further extended the options available to the trustees of a scheme to include a portion of benefits payable to pensioners.

These changes essentially provide for the sharing of the risk of scheme underfunding across all scheme members. The issue of how these changes might be applied is a matter for the trustees of a scheme who are required under trust law to act in the best interests of all scheme beneficiaries.

The trustees of defined benefit pension schemes are required under the Pensions Act to maintain sufficient assets to meet the liabilities of the scheme. This is referred to as the funding standard. Where a scheme is underfunded, the trustees are required to submit a proposal to the Pensions Authority setting out how it is proposed to restore scheme funding. The funding standard requirements were suspended in late 2008 following the downturn in financial markets. This standard was re-introduced in 2012 and the trustees of pension schemes were required to notify the Pensions Authority of their funding position by June 2013.

The vast majority of pension schemes now either satisfy the funding standard or have submitted/agreed a funding proposal with the Pension Authority. The Pensions Authority is pursuing those who have not complied with the standard and is working with all underfunded scheme to help them secure a more sustainable funding position. If all schemes can achieve a sustainable funding position then the recourse to the provisions in section 50 of the Act should diminish.

Pension provision will vary across jurisdictions. Pension schemes in Ireland are generally established under trust law where the trustees of a pension scheme are required to act in the best interest of scheme members. The provisions in trust law are further underpinned by the provisions in the Pensions Act. The present provision in section 50 of the Pensions Act provides for a higher level of protection for pensioner benefits and treats the benefits of active and deferred scheme members in the same manner. There are no plans to revise the provisions in section 50 at this time.