Defined benefit law gap
Deputy Catherine Murphy again raised the legal gap affecting deferred defined benefit pensions where a solvent company can walk away. The Taoiseach said the issue would be considered after the Pensions Authority chair reported back.
On the same issue which Deputy Willie O'Dea raised, namely, the deferred benefit pension in situations in which there is a solvent company, the Taoiseach is incorrect about the situation in the UK. In the UK a solvent company cannot walk away from a defined benefit pension scheme. Does the Taoiseach not accept that there is a gap in the law? Independent News and Media has had the benefit of having more than €130 million written off by AIB and Bank of Ireland. People who have worked in the industry and who have deferred their pensions are being left very exposed due to the gap in the law. The matter is urgent. Other companies are doing exactly the same. Does the Taoiseach not see that there is an urgent need for legislation to address the gap in the law?
Comment on this
In the UK, there is a pension protection fund which is paid for by levies. However, the fund comes into use only when the company is insolvent. The company the Deputy mentioned is not insolvent. The Minister has met the chairman of the Pensions Authority and asked him to report back on the issue of defined benefits pensions and the situation that will arise over the coming months and years. We will deliberate on it when the Minister has received the report.