W1B-029 IFUT letters-1.txt
TO: All Affiliated Organisations in the Republic

January 1991

PENSIONS ACT, 1990

Dear Colleague, The Pensions Act, 1990 came into force on 1 January, 1991 and its operation will lead to substantial improvements in pension practice over the forthcoming years. Enclosed is an explanatory booklet prepared by the Department of Social Welfare summarising the main provisions of the new legislation. Also enclosed is a separate guide to the Disclosure of Information Regulations which has been prepared by Congress.

Congress would like to draw your attention to a number of key points in the new Act. Also, we would like to alert you to a recent negative trend in pensions practice which should be brought to the attention of trade union officials involved in pension negotiations.

(i) Worker Trustees

The Minister for Social Welfare is committed to introducing Regulations for the appointment of member trustees by January 1994. However, in the meantime every effort should be made to convince employers that progress can and should be made before that date. In the absence of member trustees, Unions should seek the establishment and recognition of Pension Committees with provision for appropriate training for Committee members.

(ii) Pensions Board

In the event of a dispute with the trustees of a scheme or with an employer over the provisions of the Pensions Act, the application of the rules of the scheme or where malpractice is suspected, the Union can now refer the dispute to the Pensions Board which has a statutory duty to investigate the matter and propose and implement remedies.

(iii) Dilution of Pension Benefits; 'Defined Contribution Scheme'

It has come to the attention of Congress that some employers have been attempting to convert the normal occupational pension scheme known as a 'defined benefit scheme' to another less favourable form of scheme i.e. a 'defined contribution scheme'. It must be pointed out that this is motivated solely to escape the provisions of the Pensions Act and in almost every conceivable case a 'defined contribution scheme' will be less favourable in terms of members' benefit than a 'defined benefit scheme'. Congress is advising union negotiators to oppose this development and advise scheme members to refuse in writing to accept the winding up of their existing scheme, and to refer the matter to the Pensions Board.

Further queries on this matter should be referred to Stephen McCarthy, Industrial Officer at this office.

Yours sincerely, Peter Cassells General Secretary
