Tom Fleming (Kerry South, Independent)
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18. To ask the Minister for Jobs, Enterprise and Innovation his plans to provide access for retired workers to the State's industrial relations machinery; and the timeframe for same. [5856/15]

Richard Bruton (Dublin North Central, Fine Gael)
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I fully appreciate the concerns of retired and deferred members of pension schemes whose schemes are being restructured, particularly where such restructuring may impact on existing or potential pension benefits.

The question of whether it is appropriate that pensioner groups have access to the State’s industrial relations machinery in pursuing pension scheme grievances is an issue to which I have given careful consideration, particularly in light of representations made to me in this regard.

In addition, my Department also consulted with the industrial relations bodies under the auspices of my Department on the issues that arise in the context of collective representation of retired and deferred members of pension schemes in such circumstances.

In this context, it is important to stress that the industrial relations system in Ireland is voluntary in nature both as regards access to the Labour Relations Commission and the Labour Court. Any change to that principle which would put in place a mandated right to be part of the process would alter fundamentally the conduct of industrial relations.

As it stands, active members of pension schemes (through their Trade Unions) regularly engage with the employer to attempt to reach a common position as regards changes to pension schemes whether as a result of a crisis in the scheme or otherwise. In all such cases the outcome of that engagement can only be a collective agreement which cannot, of itself, change the pension scheme. Any proposed changes to the scheme are effected via the mechanisms set out in the trust deeds and rules of the scheme and are at the discretion of the parties so designated in the rules/deeds of the scheme. In my view, it is within this framework that a collective approach would be most effective.

It should be pointed out that the Trustees of a particular pension scheme are already required by law to act in the best interests of all the members. On that basis the trustees have to take account of the interests of the deferred and pensioner members on an individual basis in any proposals they make.

The Department of Social Protection has been considering the issue of collective representation for pensioners and deferred members of occupational pension schemes with the Pensions Authority.

Arising from this exercise, the Tánaiste and Minister for Social Protection has recently approved an amendment to guidance issued by the Pensions Authority and signed regulations on January 22nd to provide for the recognition of groups representing the interests of retired and deferred scheme members of a pension scheme.

I understand that the Pensions Authority has published the revised section 50 guidance.

I understand that the changes apply in the following situations:

The trustees of a pension scheme will now be required to notify the groups representing the interests of retired and deferred scheme members where the trustees of a scheme propose to apply to the Pensions Authority to restructure scheme benefits under section 50 of the Pensions Act. This notification affords the representative group an opportunity to make a submission to the trustees of the scheme in relation to proposals to restructure scheme benefits.

The Pensions Authority will now be required to notify groups representing the interest of scheme members where the Pensions Authority proposes to either issue a unilateral direction under section 50 of the Pensions Act to the trustees of a scheme to restructure scheme benefits or to wind up a pension scheme under section 50B of the Pensions Act. This notification affords the representative group an opportunity to make representations to the Pensions Authority in relation to its proposals to restructure scheme benefits or to wind up a pension scheme. In such situations, the representative group will also have the option of making an appeal to the high Court on a point of law in relation to such proposals.

On a separate but related matter, I am currently considering the introduction of access rights for individual retired workers to the industrial relations machinery of the State under the Industrial Relations Acts, where they have not referred their claim prior to their retirement.