David Cullinane (Waterford, Sinn Fein)
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509. To ask the Minister for Public Expenditure and Reform to outline the position regarding the cessation of a contract (details supplied); and if he will make a statement on the matter. [27263/16]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy is referring to the contract which was awarded to B&E Limited to administer the pension payments in respect of the Waterford Crystal PIPS Pension Payroll. These pensions are covered by the Pension Insolvency Payment Scheme (PIPS) which was introduced on 1st February, 2010 to assist the former employees of companies that became insolvent and where their defined benefit pension scheme was in deficit. Approximately 700 pensioners have been taken on by this Department since the inception of the scheme. They are now pensioners of this Department. Around 170 of these are currently paid by the Payroll Shared Service Centre (PSSC) with the remaining pensioners paid via a contract with a third party, B & E Limited.

This fixed term 3 year contract with B&E Limited was extended by one year and was due to conclude in September 2016. Given that the contract was scheduled to complete, it was decided to transfer the Waterford Crystal PIPS Payroll administered by B&E to the PSSC.

The first payment by the PSSC occurred on 22nd September and will cover the period 9th to 22nd of September. Given the transition arrangements involved and to minimise disruption and impact on the approximately 530 pensioners impacted a number of supports have been put in place. In addition to termination payments made to B&E in accordance with their contract, B&E were also retained until the end of November to provide support and advice to those affected by changeover.