Written answers

Tuesday, 7 July 2015

Department of Social Protection

Pensions Legislation

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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100. To ask the Minister for Social Protection her views on a matter (details supplied) in relation to the need for representation of staff associations for pension scheme purposes; her plans to introduce legislation to ensure that sponsoring employers accept responsibility for their pension schemes; her further plans to amend the Pensions Acts to allow collective representation and recognition for groups under the terms of section 50 orders to the Pension Authority; and if she will make a statement on the matter. [27652/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I am glad to say that earlier this year, I approved measures to facilitate engagement between the trustees of a pension scheme and groups representing the interests of pensioner and deferred scheme members. I signed the Occupational Pensions Schemes (Section 50 and 50B) (Amendments) Regulations, 2015 and approved Pensions Authority guidance to facilitate this change.

The change to regulations require the Pensions Authority to notify groups representing the interests of pensioner and deferred scheme members in situations where the Pensions Authority is proposing to issue a unilateral direction under section 50 of the Pensions Act to restructure scheme benefits or to wind up a pension scheme under section 50B. This requirement will afford the representative group an opportunity to make a submission to the Pensions Authority in relation to such proposals. The Regulations also give the representative group the right to appeal such a direction by the Pensions Authority to the High Court on a point of law.

I also approved an amendment to guidance issued by the Pensions Authority on this matter. This change to guidance will require the trustees of a pension scheme to notify groups representing the interest of scheme members of proposals by the trustees of a defined benefit pension scheme to issue a direction under section 50 of the Pensions Act to restructure scheme benefits. This requirement will afford the representative group an opportunity to make a submission to the trustees of a pension scheme in relation to proposals to restructure scheme benefits.

The issue of engagement with the industrial relations machinery of the State falls within the remit of the Minister for Jobs, Enterprise and Innovation. It is acknowledged 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. However, I would expect that any group that is recognised for the purposes of collective representation with the trustees of a pension scheme could seek to engage voluntarily with the enterprise involved in talks or trade dispute with its employees.

You might note that pension schemes in Ireland are generally set up under trust and, in that context the trustees of a pension scheme are required to act in the best interest of all scheme members. I have no current plans to bring forward amendments to the Pensions Act at this time and will continue to monitor the application of the act on an ongoing basis.

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