Written answers

Thursday, 3 May 2018

Department of Employment Affairs and Social Protection

Defined Benefit Pension Schemes

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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240. To ask the Minister for Employment Affairs and Social Protection if proposals that will protect workers in defined benefit schemes from attempts by their employers to abandon such schemes will be brought forward; and if she will make a statement on the matter. [19324/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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The Roadmap for Pensions Reform, which was published recently by the Government, details a number of specific measures that will modernise our pension system. It sets out under Strand 4, ‘Measures to Support the Operation of Defined Benefit Schemes’, that the Government is committed to advancing the Social Welfare, Pensions and Civil Registration Bill 2017 to respond to the ongoing difficulties in DB schemes and to increase protections for members as well encouraging employers to ensure that schemes are well funded and managed.

As the Deputy is aware, the General Scheme of the Social Welfare and Pensions Bill 2017 (now the Social Welfare, Pensions and Civil Registration Bill 2017), was published in May 2017 and contained a number of key measures relating to DB pension schemes. These proposed provisions will ensure that an employer cannot “walk away” at short notice from the pension scheme it is supporting. They seek a middle road between the current position where employers can abandon DB schemes and full and immediate debt on employer provisions. The measures will act to support existing provisions in the Pensions Act and will provide for further protection for scheme members’ benefits and enhance employer responsibilities for their schemes.

These provisions are quite technical and complex. Work to finalise them is at an advanced stage and I hope to be in position to bring forward the amendments at Committee Stage at the end of May or early June. With the co-operation of the House, the Government intends to pass this legislation before the summer recess.

I hope this clarifies the matter for the Deputy.

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