Written answers

Wednesday, 22 June 2016

Department of Jobs, Enterprise and Innovation

Pension Provisions

Photo of Clare DalyClare Daly (Dublin Fingal, Independent)
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278. To ask the Minister for Jobs, Enterprise and Innovation her plans to put mechanisms in place so that retired workers can access the State's industrial relations machinery when their pensions are affected. [17547/16]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, 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.

In this regard, the question of pensioner groups having access to the State’s industrial relations machinery in pursuing pension scheme grievances is an issue to which careful consideration has been given.

In doing so, it was important to bear in mind that the industrial relations system in Ireland is voluntary in nature both as regards access to the Workplace 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, where changes to pension schemes are negotiated at company level, whether as a result of a crisis in the scheme or otherwise, the outcome of that engagement cannot, of itself, change the pension scheme. Rather, any proposed changes to the scheme are effected through 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, rather than through the State’s industrial relations machinery, that a collective approach would be most effective.

In terms of changes to pension schemes generally, the trustees of a particular pension scheme are required by law to act in the best interests of all the members, be they active, deferred or pensioner members. Until recently, this has been done on an individual basis.

Section 50 of the Pensions Act was revised last year to provide for the recognition by trustees and the Pensions Authority of groups representing the interests of retired and deferred scheme members of a particular pension scheme. The required revised section 50 guidance has been published by the Pensions Authority.

Trustees of a pension scheme are now 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 such proposals.

In addition, the Pensions Authority is now 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 such proposals.

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