Written answers
Wednesday, 14 January 2015
Department of Social Protection
Pensions Insolvency Payments Scheme
Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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58. To ask the Minister for Social Protection the pension schemes that became insolvent between 25 January 2007 and 25 December 2013 and which availed of the personal insolvency practitioners service; the size of each in terms of number of members; the name of the sponsoring employer; the scale of the deficit in each at the time of wind-up; and if she will make a statement on the matter. [1049/15]
Joan Burton (Dublin West, Labour)
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The Social Welfare and Pensions Act 2009 provided for the establishment by the Minister for Finance of a Pensions Insolvency Payments scheme (PIPS) to provide for the payment of pensions in the event of the wind up of a pension scheme where both the employer and the scheme is insolvent to secure the payment of pension at less cost than through traditional annuities, thereby making more scheme assets available for the pensions of those yet to retire.
This is a cost-neutral Exchequer scheme whereby the trustees of a pension scheme transfer the required assets of a scheme to the Exchequer to cover the cost of paying the pensions of retired members. On receipt the required assets, the State take responsibility for the future payment of pensions to the beneficiaries covered by the scheme at the rate agreed by the Minister for Finance in approving the application.
The following table indicates the number of applications received by the Pensions Authority since the scheme was introduced in May 2010.
| Date wind Up | Employer | Deficit € | Data Date | Pensioners | Actives | Deferred |
|---|---|---|---|---|---|---|
| 29/06/12 | Protim Abrasives Ltd. | 3,690,000 | 01/05/2010 | 17 | 0 | 45 |
| 19/07/12 | Glencullen Holdins Ltd | 898,000 | 28/02/2012 | 18 | 17 | 71 |
| 01/12/10 | McCormick MacNaughton Ltd | 2,960,000 | 31/12/2011 | 3 | 8 | 12 |
| 31/03/12 | BHT Group Ltd. | 3,750,000 | 31/12/2011 | 117 | 62 | 259 |
| 28/06/11 | McConnell Group Ltd. | 1,600,000 | 01/03/2011 | 13 | 0 | 41 |
| 28/06/11 | McConnell Group Ltd. | 1,230,000 | 01/05/2011 | 3 | 0 | 1 |
| 31/03/09 | Waterford Crystal Ltd. | 38,933,000 | 31/08/2009 | 162 | 262 | 337 |
| 31/03/09 | Waterford Crystal Ltd. | 58,909,000 | 31/08/2009 | 475 | 669 | 544 |
| 30/06/09 | Waterford/Wedgewood PLC | 5,537,000 | 30/04/2009 | 22 | 1 | 5 |
| 15/01/2013 | Curragh Tintawn Carpets | 2,300,000 | 31/12/2011 | 40 | 77 | 37 |
| 22/10/2012 | Co-Operative Poultry Products | 360,000 | 01/10/2011 | 0 | 0 | 58 |
There are three separate stages to the application process:
1. a scheme‘s trustees must first apply to the Pensions Authority to become certified as an eligible pension scheme as defined under PIPS,
2. if the Pensions Authority approves the certification, the trustees may apply to the Minister for Finance to become a participating pension scheme and qualify for payments under PIPS, and
3. if the Minister for Finance approves the application and the Trustees accept the offer and quote provided by the Minister for Finance, arrangements will be made for the payment of the relevant amount into the Exchequer and for the future payments to relevant pensioners.
The table above shows the number of applications received by the Pensions Authority seeking certification by the Authority as an eligible scheme for consideration by the Minister for Finance for the payment of pensioner benefits under the pension insolvency payments scheme. The table shows the membership of the scheme and the deficit in the scheme at the ‘data date’.
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