Politics

Firms may be forced to go to watchdog before winding up pensions

About 650,000 workers would benefit if Fianna Fáil Bill passed, says Willie O’Dea

Protesters outside the Alexander Hotel where the Independent News & Media egm took place in December. File photograph: Cyril Byrne/The Irish Times

Sarah Bardon
Tue Feb 7 2017 - 15:29

Fianna Fáil has proposed legislation which would make it illegal for a solvent company to wind up a pension scheme without the consent of the Pensions Authority.

The party’s social protection spokesman Willie O’Dea said the Bill, which will be debated in the Dáil on Tuesday evening, would not be retrospective.

Mr O'Dea said it would not apply in the case of Independent News and Media (INM), which has moved to reduce pensions for existing and former staff members.

“My advice is that that is not constitutionally possible.”

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The Fianna Fáil TD said it was “inconceivable” that a financially solvent company would be allowed wind up its pension scheme thereby reducing the pension entitlements of their workers.

“Of course companies need to protect their viability, but that is not the same as protecting their profit margins,” he said. “Companies have an obligation to, as far as possible, to treat their employees in a fair and equitable manner.”

In cases where a company is being wound down members can appeal the decision of the trustees to the Pensions Authority.

The legislation will also ask the Pensions Authority to prepare a report on establishing a pension protection scheme.

Mr O’Dea said 650,000 workers stand to benefit from the Bill if it passes through the Dáil.

He is, however, reliant on the support of Sinn Féin, Labour and the Anti-Austerity Alliance-People Before Profit.

Mr O'Dea said similar Bills had been proposed by Sinn Féin and the Labour Party in response to the situation at INM. He said the former Labour leader Joan Burton rejected similar proposals from him when she was a member of the last government.

While he welcomed the “conversion” from Ms Burton, the Fianna Fáil TD said it was an attempt by the party to appear relevant.

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