Crosscare workers win right to pension scheme

Four staff in the social care agency of the Catholic Archdiocese of Dublin have won the right to be included in a pension scheme…

Four staff in the social care agency of the Catholic Archdiocese of Dublin have won the right to be included in a pension scheme that will boost their lump sum and weekly retirement payments.

Impact trade union took their case to the Labour Court after Crosscare Teen Counselling said the four were not entitled to join an old pre-July 1st, 2004 defined benefit scheme.

Crosscare said the staff did not meet the required criteria of completing 12 months' service after a probationary period ended.

The pension, arranged through an Archdiocese of Dublin plan, was altered on July 1st, 2004 with a new scheme giving lesser benefits on retirement than the old scheme both in terms of lump sum and weekly payments, according to the court.

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Crosscare, which employs 170 staff, told the court it had no alternative but to amend the benefit structure due to the significant financial pressures on the pension plan.

"The change in the benefit provided was critical to ensure the long-term viability of the excellent defined benefit scheme provided to members. The post July 2004 pension plan provided is still without comparison in the charitable sector and most other sectors," Crosscare said.

The row about excluding the four staff came to light last January when one of them wrote to the pension trustees about the administration of the plan in the expectation that all of them would be in the old scheme.

Local discussions about the row were not successful and the dispute was referred to the Labour Relations Commission. A conciliation conference was held but agreement was not reached.

Impact said the four were employed prior to the introduction of the new pension scheme and there was no consultation with either the staff or the union until after the new scheme was introduced. It said the new scheme would significantly reduce the benefits of the four.

In its recommendation yesterday, the court noted the four were employed before the inception of the new scheme.

"The court is satisfied that on taking up employment they had a legitimate expectation of becoming entitled to pension benefits in line with those provided by the organisation at that time.

"The court is of the view that the four members of staff concerned should be admitted to membership of the old scheme."