The Irish Congress of Trade Unions today has called on the government to introduce emergency legislation to prevent solvent companies "walking away" from pension schemes and for the establishment of a High Level Commission to devise a strategy to ensure the survival of over 700 defined benefit (DB) pension schemes in existence.
The call for emergency legislation was agreed following a meeting of the Congress Executive Council, at which the recent attempt to close down the Independent News & Media scheme (INM) was discussed.
Speaking after the Executive Council meeting, Congress Pensions" Expert Fergus Whelan said: "We need government to move immediately and introduce emergency legislation such as has existed in the UK for almost 20 years and which prevents solvent companies walking away and reneging on their pension obligations.
'the UK's Debt on the Employer legislation has been in force since 1995 and prevents precisely what was attempted recently with the INM scheme. We clearly need to see similar legislation introduced here as a matter of urgency. Working people who put money into schemes are entitled to see that protected and for the contract they enter into with their employer on pensions to be honoured," he said.
Mr Whelan pointed out that Congress wrote to Social Protection Minister Leo Varadkar before the INM pension controversy erupted, requesting that "he immediately set up a High Level Commission involving experts, stakeholders and trustees to find ways to ensure the assets of surviving Defined Benefit schemes can be used in the interests of the rightful owners of those assets.
"We are awaiting the Minister's response on this," he said.
There are over 700 defined benefit pension schemes in existence, covering more than 100,000 people.
