Pensions Board obtained a High Court judgement against Irish construction company for €186,000 in pension arrears.

Monday 31 March 2008: The Pensions Board successfully took a case to the High Court, applying for an order directing an employer to pay arrears of contributions to a pension scheme.

Today Miss Justice Laffoy gave judgment to the Board directing Limestone Construction Ltd (“Limestone”) to pay arrears of contributions amounting to €186,825 to the Construction Workers’ Pension Scheme (CWPS). Limestone’s registered office is at 2 Kilreesk Lane, St Margaret’s, Co. Dublin.

Arising out of a complaint that Limestone had failed to remit pension contributions deducted from its employees the Board launched an investigation to ascertain the position. On 17 October 2007, authorised officers of the Board conducted an unannounced on-site visit of Limestone’s business premises to investigate its participation in CWPS. The Board was accompanied by members of the Gardai and also had a warrant issued by the District Court. As a result of the site visit the Board had reason to seize computer equipment and payroll records and had these analysed by forensic accountants against the membership and remittance records held by CWPS.

The Board discovered that Limestone had been deducting pension contributions from the wages of nearly 200 employees over the period of 14 months, but had not paid these to CWPS. In addition, Limestone had failed to make employer contributions. The Board ascertained that approximately €186,000 of employer and employee contributions is owed. Limestone is now required to forthwith pay these arrears of contributions due to CWPS.

Commenting on the judgment, the Chief Executive Officer of the Pensions Board, Brendan Kennedy, said: “The importance of the judgment obtained today cannot be underestimated. Failure to pay contributions to a scheme jeopardises the future retirement income of members and their dependants and that is a situation that will not be tolerated by the Board. The Board in the first instance will try to secure compliance with the Pensions Act on a voluntary basis. Where this does not happen, the Board will not hesitate to pursue any party who takes money out of the pay packet of any worker and fails to remit that money to a pension scheme on their behalf. The Board will use its best endeavours to ensure that the arrears in this case are paid as rapidly as possible including, in so far as is necessary or appropriate, making further applications to the High Court to enforce the judgment against Limestone.”

Please see Fact Sheet below.

-ENDS-

For further information:

David Malone
Head of Information Services
The Pensions Board Tel (01) 613 1900

Jackie Gallagher
Q4 Public Relations Tel (01) 475 1444/ 087- 2371838


Fact Sheet:

1. The Pensions Board

The Pensions Board is the statutory body established by The Pensions Act 1990 to regulate occupational pension schemes and Personal Retirement Savings Accounts (PRSAs) and to advise the Minister for Social and Family Affairs, and through him, the Government, 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.


2. 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.

CWPS was not a party to the High Court proceedings, but its trustees and administrators cooperated with the Board in its investigation of Limestone.


3. Limestone Construction Ltd (“Limestone”)

Limestone Construction Ltd (“Limestone”) is the defendant in proceedings brought by the Board in the High Court. Its registered office is at 2 Kilreesk Lane, St Margaret’s, Co. Dublin. Its directors are Colm McNulty and Martina McNulty

According to CWPS, Limestone is an employer operating in the construction industry and has been, since 1 July 2006, a party to CWPS. Pursuant to the REA and the terms of its adherence to rules of CWPS, Limestone is contractually bound and therefore statutorily bound under the Act to deduct and remit contributions to CWPS.


4. The High Court Proceedings

Under Section 87 of the Act, the Board may apply to the High Court for an order directing an employer to pay arrears of contributions to a scheme.

Section 87 proceedings, which are civil proceedings, were commenced against Limestone on 4 March 2008. The application was supported by affidavit evidence including the forensic report into the payroll records. The matter came before Miss Justice Laffoy on 10 March 2008 who directed Limestone to submit an affidavit by 26 March 2008. No affidavit was lodged and the Defendant has failed to appear at any of the hearings.

On 31 March 2008, Miss Justice Laffoy gave judgement to the Board and directing Limestone to pay arrears of contributions amounting €186,825 to CWPS


5. Effect of Judgement and Next Steps

Limestone is now required to forthwith pay the arrears of contributions due to CWPS.

The Board will use its best endeavours to ensure that the arrears are paid as rapidly as possible including, in so far as necessary or appropriate, making further applications to the High Court to enforce the judgement against Limestone.

 
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