Construction company pays outstanding pension contributions to the Construction Workers Pension Scheme
Wednesday 12 January 2011: Yesterday in the Richmond District Court, prosecution summonses were withdrawn by The Pensions Board against W.W. Electrical Limited with a registered address of 9 Corrybeg, Templeogue, Dublin 6W and the company’s three directors, Terence Wall, Alan Wall and Eileen Wall.
The prosecution summonses were withdrawn on the basis that the full pension contribution arrears were paid immediately by this employer and other mitigating factors (including the health of one of the directors; and the production of certain information by this employer). The employer also agreed to discharge some of the legal costs incurred by the Board. The bank draft for €13,000 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.
Judge Bridget Riley noted that the prosecution was properly brought by The Pensions Board for the protection of the employees and also noted that it was dealt with fully by the employer albeit late.
In an earlier case on Friday 7 January 2011, in Waterford District Court, Judge Earley, adjourned sentencing in the case of 5 summonses issued by The Pensions Board until 4 November 2011, in order for pension contribution arrears to be paid in full by the defendants to the Construction Workers Pension Scheme. The Judge stated that if full arrears were not paid by that date, he would consider exercising the option of imposing a custodial sentence against the directors of the defendant company. The five summonses related to breaches of section 58A and section 18 of the Pensions Act. Section 58A relates to pension contributions being deducted from employee wages and not remitted to the trustees of the pension scheme within 21 days following the end of each month. Section 18 relates to non-compliance with a statutory request made by The Pensions Board seeking certain documentation, information and material concerning the non-remission of pension contributions to the trustee.
The Pensions Board supervises occupational pension schemes and monitors employers’ compliance with the legislation relating to the collection and remittance of pension contributions.
For further information:
Head of Information
The Pensions Board
Tel (01) 6131900/ 087 6857743
Q4 Public Relations
Tel (01) 4751444/ 087 2371838
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 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.
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.