Written answers

Tuesday, 7 July 2015

Department of Social Protection

Community Employment Schemes Funding

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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48. To ask the Minister for Social Protection if her Department has accepted Labour Court recommendation No. 19293 of 22 July 2008; her current position on this ruling; the number of potential persons who would receive pension payments if the recommendation was brought into effect; the projected cost in a full year of both the pension liability and the gratuity; and if she will make a statement on the matter. [27008/15]

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
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The Deputy will be aware that the individuals concerned are the employees of private companies. In the circumstances, it is not possible for the State to take over responsibility for funding pension arrangements for employees of private companies, even where those companies are reliant on State funding. This position was confirmed by the Department of Public Expenditure & Reform to this Department in March 2015.

The provision of State funding for a CE pension scheme would result in potential claims from employees of other companies in the community sector. The State cannot afford this level of exposure to funding pension arrangements.

The Department of Public Expenditure and Reform's position is that private companies contracted by the State to provide a service, including those in the community sector, must manage their expenditure pressures, including labour and pension costs, from within existing funding levels.

Employers (including CE Sponsoring Organisations) are legally obliged to offer access to at least one Standard Personal Retirement Savings Account (PRSA) under the Pension (Amendment) Act 2002. All CE Sponsoring Organisations were apprised of their responsibilities under this Act at that time.

CE Supervisors may also qualify for the State Pension at 66 years of age. If they have accrued sufficient PRSI contributions (520 contributions @ full rate, equivalent to 10 years contributions) they will qualify for the State Pension (Contributory), which is not means-tested. In the event that there are insufficient contributions, the person will qualify for the State Pension (Non-Contributory), provided they satisfy the means test.

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