Construction company and director convicted for failing to remit employee pension contributions and for failure to comply with a statutory request made by The Pensions Board
Tuesday 25 October 2011: In Letterkenny District Court, yesterday, 24 October 2011, Judge Kelly imposed fines totalling €1,500 on John J Dolan with an address at Liskey, Ballinadrait, Lifford, Co. Donegal for failing to remit employee pension contributions to the trustee of the Construction Workers Pension Scheme (CWPS) within the statutory time limit and for failing to comply with a statutory request made by The Pensions Board. John J Dolan Scaffolding Limited (in Liquidation) was also convicted and fined a sum of €3,000 in respect of the same offences.
John J Dolan, is a director of John J Dolan Scaffolding Ltd (in Liquidation), a company which had deducted pension contributions from the wages and salaries of its employees in the months of October 2008, May 2009, September 2009, October 2009 and December 2009 for remittance to the trustee of CWPS but which failed to remit the contributions to the trustee within the statutory time frame. This meant that employees working for that company were not covered for pension benefits, sick pay benefits or death in service benefits for those months. The offences of the company were committed with the consent or connivance of or attributable to neglect on the part of John J Dolan as director of the company, contrary to the provisions of Section 58A(1) and Section 3 of the Pensions Act 1990.
John J Dolan Scaffolding Limited went into liquidation on 28 September 2010. Both the company and Mr Dolan pleaded guilty to the offences.
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 the conviction in this case, the Chief Executive of The Pensions Board, Mr. Brendan Kennedy, said, “The conviction today 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. The Board also treats failure to respond to a request for information by the Board very seriously. The Board advises any employer with outstanding pension contributions to immediately contact the pension scheme to regularise their position.”
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For further information:
David Malone
Head of Information
The Pensions Board
Tel: 01 6131900
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.