Construction company pays outstanding pension contributions to the Construction Workers Pension Scheme
Thursday 13 October 2011: In Newcastle West District Court, on Tuesday 11 October 2011, prosecution summonses were struck out by The Pensions Board against Frank McGrath Construction Limited (in Receivership) with a registered address of Orchard House, Main Street, Pallaskenry, Co. Limerick and the company’s two directors, Frank McGrath and Jerry Murphy.
Summonses were struck out on the basis that the full pension contribution arrears (both employer and employee contributions) were fully discharged by this employer prior to the Court date. The employer also agreed to discharge legal costs in the sum of €2,283.90 incurred by the Board. The repayment of €50,554.00 covered the full amount owed by the company to the pension scheme including both employee and employer contributions which had not been remitted to the scheme. The employee contributions had been deducted from employee wages and not remitted to the trustees of the scheme within the timeframe required by the Pensions Act, 1990, as amended.
The Pensions Board supervises occupational pension schemes and monitors employers’ compliance with the legislation relating to the collection and remittance of pension contributions.
Commenting on this case, the Chief Executive of the Pensions Board, Mr. Brendan Kennedy, said, “This case should act as a warning to all employers and company directors that The Pensions Board treats the failure of the employer to remit pension contributions to the trustees of the pension scheme as a very serious offence. We advise any employer with outstanding pension contributions to immediately contact the pension scheme to regularisetheir position.”
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For further information:
David Malone
Head of Information
The Pensions Board
Tel: 01 6131900
Mobile: 087 6857743
Note to Editors
The Pensions Board
The Pensions Board is the statutory body established by The Pensions Act 1990 to regulate occupational pension schemes, trust based RACs and Personal Retirement Savings Accounts (PRSAs) and to advise the Minister for Social Protection on overall pension policy development. See www.pensionsboard.ie
Under the Act, the Board has power to investigate the state and conduct of Irish pension schemes, and to ensure that trustees, employers, pension administrators and their advisers comply with the obligations they owe to current and former employees in relation to their pension contributions and benefits.
The Board’s powers allow it to conduct on-site visits without notice, seize and copy relevant documents, enter dwellings on foot of a warrant, and to prosecute and or sue any person that contravenes the provisions of the Act.
The Construction Workers Pension Scheme (“CWPS”)
CWPS is an occupational pension scheme approved by the Revenue Commissioners and registered with The Pensions Board. It was established pursuant to a Registered Employment Agreement (“REA”) on Construction Industry Pensions, Assurance and Sick Pay, which is registered by the Labour Court and was concluded between employers and employee organisations operating in the construction industry.
Under the REA, all employers operating in the construction industry are required to become a party to an approved contributory pension scheme to provide pension and death-in-service benefits to employees. These obligations are discharged by deducting pension contributions from their employees and remitting them to CWPS or another appropriate scheme.
