Written answers

Wednesday, 14 January 2015

Department of Social Protection

European Court of Human Rights Rulings

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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24. To ask the Minister for Social Protection if the decision of the European Court of Justice in April 2013 has a wider implication beyond the case of the former Waterford Crystal workers; if the application of the finding relates to other pension schemes here; if he will provide a list of such schemes; the period over which such schemes may be affected by the ruling; if he will provide details of the State's response; and if she will make a statement on the matter. [49563/14]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The recent rulings of the European Court of Justice (ECJ) on the Insolvency Directive (2008/94) has implications for any defined benefit pension scheme that has wound up after the date of the ECJ ruling in the UK Robins case on 25 January 2007 where on the date of the wind up both the scheme and the employer is insolvent (double insolvency).

The Social Welfare and Pensions (No.2) Act 2013 amended the Pensions Act to addressdouble insolvencies occurring after 25 December 2013. No claim has been made in respect of any double insolvencies occurring since the enactment of the 2013 legislation.

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 are insolvent, at less cost than through traditional annuities, thereby making more scheme assets available for the pensions of those yet to retire.

Application for pension payments under this scheme would give an indication of the number of double insolvencies arising in the period since the ECJ ruling in the Robins case and which may make a claim against the State. The table below lists the schemes which have applied to the Pensions Authority for certification as an eligible scheme for payment under PIPs.

Application for Pensions Insolvency Payments Scheme

Date Wind upEmployer Pensioners Actives Deferred
29/06/12Protim Abrasives Ltd.17045
19/07/12Glencullen Holdings Ltd.181771
01/12/10McCormick MacNaughton Ltd.3812
31/03/12BHT Group Ltd.11762259
28/06/11McConnell Group Ltd.13041
28/06/11McConnell Group Ltd.301
31/03/09Waterford Crystal Ltd.162262337
31/03/09Waterford Crystal Ltd.475669544
30/06/09Waterford Wedgewood PLC2215
15/01/13Curragh Tintawn Carpets407737
22/10/12Co-Operative Poultry Products0058


The Minister for Finance has made provision through the pension levy to meet any liability that might arise in a double insolvency occurring since the ECJ ruling in the Robins case.

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