Michael McGrath (Cork South Central, Fianna Fail)
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172. To ask the Minister for Social Protection the changes contained in both Social Welfare and Pensions Acts 2009 and 2013 in respect of the entitlements of deferred members of pension schemes in the event of the schemes being wound up; and if she will make a statement on the matter. [43087/14]

Joan Burton (Dublin West, Labour)
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Section 48 of the Pensions Act sets out the order (wind up priority order) in which the assets of a defined benefits pension scheme are distributed in the event of the wind up of a scheme. The wind up priority order was amended by the Social Welfare and Pensions (No.2) Act in 2013. Prior to these changes pensioner benefits were given priority over the benefits of active and deferred scheme members. The recent changes to the wind up priority order essentially de-prioritises a portion of pensioner benefits in the manner in which the resource of a scheme are distributed on the windup of a pension scheme. These changes make more resources of the scheme available in the initial distribution of assets to active and deferred scheme members. The impact of these changes will be determined by the level of funding in a pension scheme at the time of the wind up.

These recent changes to the Pensions Act are underpinned by additional measures which have been put in place by the Pensions Authority to assist pension schemes achieve a sustainable funding position. It is the medium term objective that all defined benefit schemes will achieve a level of funding which will include a funding risk reserve to protect the rights of scheme members against future volatility in financial markets.