Employers to be questioned over pensions

The Pensions Board today issued 64,000 letters and questionnaires to employers who do not have an occupational pension scheme…

The Pensions Board today issued 64,000 letters and questionnaires to employers who do not have an occupational pension scheme or who have failed to sign up with a personal pension provider.

Under pensions legislation, all employers were required by September 15th 2003, to have entered a contract with a Personal Retirement Savings Account (PRSA) provider so that staff have access to at least one form of retirement saving.

The board is particularly concerned about pension coverage among small employers - particularly in the service, hospitality, retail and farming sectors where there is a higher proportion casual employees.

The employers will be requested to complete and return the questionnaire consisting of five questions, which demonstrates their compliance with the law or to clarify their position.

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Employers have until September 30th to respond to the letter. Failure to comply with pension legislation is a criminal offence that could lead to possible significant criminal sanctions.

The most recent quarterly figures released by the Pensions Board in early August 2004 demonstrated a continuous steady increase in uptake in PRSAs by employees.

However, against the backdrop of a national policy objective of driving pension coverage from 50 per cent to 70 per cent of the workforce, the board continues to give a high priority to monitoring of employers' obligations.

The Pensions Board continues to encourage all employees who do not have a pension to ask their employer about access to one. The board operates a Lo-Call phone line at 1890-656565, and the public can call this number for information or log onto the Pensions Board website.