Michael McGrath (Cork South Central, Fianna Fail)
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64. To ask the Minister for Finance the role he has had in the arrangements for provision of pensions to former employees of Waterford Crystal; when all lumps sums and regular payments will be made; and if he will make a statement on the matter. [41057/15]

Michael Noonan (Limerick City, Fine Gael)
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The European Court of Justice (ECJ) delivered a judgement on 25 April 2013 arising from an investigation of complaints under Directive 2008/94/EC on the protection of employees in the event of the insolvency of their employer and the resultant contractual obligations that derive under the transposition of that Directive by the Irish Government.

The ECJ found in favour of the plaintiffs who were 10 former Waterford Crystal Workers. It held that the Irish Government had failed to transpose the Directive in such a manner as to protect the rights of the plaintiffs to old-age benefits under a supplementary pension scheme established by their employer.

Following a mediation process, the Government accepted recommendations to resolve the matter. The recommendations included payment of a cash lump sum by way of compensation to each deferred member of the Waterford Crystal factory and staff schemes amounting to €1,200 per year of service in the pension scheme. A total of 1,774 recipients were identified for payment.

The underpinning statutory arrangements are in Section 4 of the Social Welfare and Pensions (No. 2) Act 2014 which inserted Section 48B to the Pensions Act 1990. This provided for the Minister for Finance, at the request of the Minister for Social Protection, following consultation with the Minister for Public Expenditure and Reform, to pay moneys from the Central Fund to an approved person for the purpose of the discharge by the approved person of the liabilities of an eligible pension scheme. The Minister for Finance, following consultation with the Minister for Public Expenditure and Reform, authorised the Minister for Social Protection to be the approved person.

The Department of Social Protection, as the approved person, has advised that amounts up to €45 million in total are required to be paid from the Central Fund for it to pay the compensation component of the mediation agreement approved by the Government. Thus far the Department of Social Protection has made 1575 payments amounting to €42.13 million and this amount has been recouped by the Department of Finance from the Central Fund. The remaining balance of payments is being worked on by the Department of Social Protection. ThatDepartment is also considering options regarding a payment solution for the ongoing regular pension payments.