Social Welfare and Pensions (No. 2) Act 2013

• Permanent Page URL

Amendment of section 48 of Act of 1990

9. Section 48 of the Act of 1990 is amended—

(a) by inserting the following subsections after subsection (1A):

“(1AA) Notwithstanding subsections (1) and (1A), in applying the resources of a relevant scheme, other than a relevant scheme referred to in subsection (1AB), that is wound up after the passing of the Social Welfare and Pensions (No. 2) Act 2013, the trustees shall discharge the liabilities of the relevant scheme for the following benefits in the following order:

(a) firstly—

(i) all additional benefits secured or granted by way of additional voluntary contributions or a transfer of rights from another scheme to which paragraph 2 of the Third Schedule relates to the extent that the rights to which the transfer relates were originally secured or granted by way of additional voluntary contributions, and

(ii) benefits, the rate or amount of which is directly determined by the accumulated value of the contributions paid by or in respect of a member, or a transfer of rights from another scheme to the extent that the rate or amount of the rights to which the transfer relates is directly determined by the accumulated value of the contributions paid by or in respect of the member;

(b) secondly, in respect of the benefits (not including post-retirement increases in such benefits) specified in paragraph 1 of the Third Schedule to or in respect of those persons who, at the date of the winding up of the scheme, were within the categories referred to in that paragraph, the portion specified in subsection (1AC), to the extent that those benefits have not already been discharged;

(c) thirdly, 50 per cent of the benefits (not including post-retirement increases in such benefits) specified in paragraphs 2, 3 and 4 of the Third Schedule to or in respect of those members of the scheme who, at the date of the winding up of the scheme, were within the categories referred to in those paragraphs, to the extent that those benefits have not already been discharged;

(d) fourthly, the benefits (not including post-retirement increases in such benefits) specified in paragraph 1 of the Third Schedule to or in respect of those persons who, at the date of the winding up of the scheme, were within the categories referred to in that paragraph, to the extent that those benefits have not already been discharged;

(e) fifthly, the benefits (not including post-retirement increases in such benefits) specified in paragraphs 2, 3 and 4 of the Third Schedule to or in respect of those members of the scheme who, at the date of the winding up of the scheme, were within the categories referred to in those paragraphs, to the extent that those benefits have not already been discharged; and

(f) sixthly, the benefits specified in paragraphs 1, 2, 3 and 4 of the Third Schedule to or in respect of those persons and members of the scheme who, at the date of the winding up of the scheme, were within any of the categories referred to in any of those paragraphs, to the extent that those benefits have not already been discharged,

before discharging the liabilities of the scheme for other benefits.

(1AB) Notwithstanding subsections (1) and (1A), in applying the resources of a relevant scheme that is wound up after the passing of the Social Welfare and Pensions (No. 2) Act 2013 and at the date of the winding up the employer participating in the relevant scheme is, or where more than one employer participates in such scheme, all of the employers participating in the scheme are, insolvent for the purposes of the Act of 1984, the trustees shall discharge the liabilities of the relevant scheme for the following benefits in the following order:

(a) firstly—

(i) all additional benefits secured or granted by way of additional voluntary contributions or a transfer of rights from another scheme to which paragraph 2 of the Third Schedule relates to the extent that the rights to which the transfer relates were originally secured or granted by way of additional voluntary contributions, and

(ii) benefits, the rate or amount of which is directly determined by the accumulated value of the contributions paid by or in respect of a member, or a transfer of rights from another scheme to the extent that the rate or amount of the rights to which the transfer relates is directly determined by the accumulated value of the contributions paid by or in respect of the member;

(b) secondly, 50 per cent of the benefits specified in paragraph 1 of the Third Schedule to or in respect of those persons who, at the date of the winding up of the scheme, were within the categories referred to in that paragraph, to the extent that those benefits have not already been discharged;

(c) thirdly, 50 per cent of the benefits specified in paragraphs 2, 3 and 4 of the Third Schedule to or in respect of those members of the scheme who, at the date of the winding up of the scheme, were within the categories referred to in those paragraphs, to the extent that those benefits have not already been discharged;

(d) fourthly, in respect of the benefits (not including post-retirement increases in such benefits) specified in paragraph 1 of the Third Schedule to or in respect of those persons who, at the date of the winding up of the scheme, were within the categories referred to in that paragraph—

(i) the annual amount, or

(ii) €12,000,

whichever is the lesser, to the extent that those benefits have not already been discharged;

(e) fifthly, the benefits (not including post-retirement increases in such benefits) specified in paragraph 1 of the Third Schedule to or in respect of those persons who, at the date of the winding up of the scheme, were within the categories referred to in that paragraph, to the extent that those benefits have not already been discharged;

(f) sixthly, the benefits (not including post-retirement increases in such benefits) specified in paragraphs 2, 3 and 4 of the Third Schedule to or in respect of those members of the scheme who, at the date of the winding up of the scheme, were within the categories referred to in those paragraphs, to the extent that those benefits have not already been discharged; and

(g) seventhly, the benefits specified in paragraphs 1, 2, 3 and 4 of the Third Schedule to or in respect of those persons and members of the scheme who, at the date of the winding up of the scheme, were within any of the categories referred to in any of those paragraphs, to the extent that those benefits have not already been discharged,

before discharging the liabilities of the scheme for other benefits.

(1AC) For the purposes of paragraph (b) of subsection (1AA), the portion of the benefits shall be—

(a) where the annual amount is €12,000 or less—

(i) the annual amount, or

(ii) €12,000,

whichever is the lesser, or

(b) where the annual amount is greater than €12,000 and is less than €60,000—

(i) €12,000, or

(ii) 90 per cent of the annual amount,

whichever is the greater, or

(c) where the annual amount is €60,000 or more—

(i) €54,000, or

(ii) 80 per cent of the annual amount,

whichever is the greater.”,

(b) by inserting the following subsections after subsection (1B):

“(1C) The liabilities of the relevant scheme in respect of the benefits referred to in—

(a) each of the paragraphs (a) to (f) of subsection (1AA) shall rank equally between each other and shall be paid in full unless the resources of the relevant scheme are insufficient to meet those liabilities, in which case they shall abate in equal proportions as between each other, and

(b) each of the paragraphs (a) to (g) of subsection (1AB) shall rank equally between each other and shall be paid in full unless the resources of the relevant scheme are insufficient to meet those liabilities, in which case they shall abate in equal proportions as between each other.

(1D) Where in the discharge of the liabilities of a relevant scheme under subsection (1AB), the resources of the relevant scheme are not sufficient to discharge, in whole or in part, the liabilities of the scheme in respect of the benefits referred to in paragraphs (b), (c) and (d) of subsection (1AB), or any of those benefits referred to in any of those paragraphs, the Minister for Finance shall, in accordance with section 48A, pay the amount certified under section 48A that is required to provide for the discharge of those liabilities in respect of those benefits in accordance with those paragraphs.”,

(c) in subsection (2), by substituting “subsection (1)(b), (1A), (1AA) or (1AB) applies” for “subsection (1)(b) or (1A) applies”,

(d) in subsection (3), by substituting “subsections (1), (1A), (1AA), (1AB) and (2)” for “subsections (1) and (2)”,

(e) in subsection (3A), by substituting “in subsections (1)(b), (1A), (1AA) and (1AB)” for “in subparagraphs (i), (ii) and (iii) of subsection (1)(b) and paragraphs (a), (b), (c) and (d) of subsection (1A)”,

(f) in subsection (3B)—

(i) by substituting “in subsections (1)(b), (1A), (1AA) and (1AB)” for “in subparagraphs (i), (ii) and (iii) of subsection (1)(b) and paragraphs (a), (b), (c) and (d) of subsection (1A)”, and

(ii) by substituting “in subsections (1)(b)(ii), (1A)(b), (1AA)(b), (1AA)(d), (1AB)(b), (1AB)(d) and (1AB)(e)” for “in subparagraph (ii) of subsection (1)(b) and paragraph (b) of subsection (1A)”,

and

(g) by inserting the following subsections after subsection (6):

“(7) In this section—

(a) references to a post-retirement increase shall not include a post-retirement increase which became payable before the date of the winding up, and

(b) references to an employer being insolvent for the purposes of the Act of 1984 shall be construed in accordance with that Act.

(8) In this section—

‘Act of 1984’ means the Protection of Employees (Employers’ Insolvency) Act 1984 ;

‘annual amount’, in relation to benefits, means the benefits payable to or in respect of a person in the form of an annual pension expressed as an annual amount.”.