Written answers

Tuesday, 15 January 2019

Department of Employment Affairs and Social Protection

Proposed Legislation

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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1040. To ask the Minister for Employment Affairs and Social Protection if the Attorney General is satisfied with the defined benefit pensions provisions in the Social Welfare, Pensions and Civil Registration Bill 2017; and if the Bill can now proceed to Committee Stage. [54070/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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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. It is intended that these measures will act to support existing provisions in the Pensions Act by providing for further protection for scheme members’ benefits and enhancing employer responsibilities for their schemes.

In July 2018, Government approval was obtained to draft additional provisions to be included in the Bill on Committee Stage including provisions relating to defined benefit schemes.

In developing these provisions, it is essential to be cognisant of the current pension landscape in Ireland so that a balanced, proportionate approach is developed and that unintended negative consequences do not arise.

Under existing pensions law, there is no legislative obligation on the employer to make contributions to a scheme. However, the provisions of this Bill will introduce a new regime into the Pensions Act 1990 which, amongst other things, will ensure that an employer cannot “walk away” at short notice from the pension scheme it is supporting by providing for a 12-month notification period, and will enable the Pensions Authority to make a funding obligation direction specifying payments to be made by a sponsoring employer to the pension scheme where no agreement is reached, within a specified time period, to resolve a funding deficit.

The defined benefit pension provisions are very technical and involve complex policy issues. In order to achieve a resilient solution it has been necessary to consult in detail with other Government Departments and obtain numerous legal advices from the Office of the Attorney General on various aspects of the provisions. When these matters have been resolved and amendments approved by Government, an early date for Committee Stage will be requested.

I hope this clarifies the matter for the Deputy.

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