Pensions Insolvency Payments Scheme (PIPS)

The Government announced last year that a Pensions Insolvency Payments Scheme would be established “to assist employees and former employees of companies where the employer becomes insolvent and the defined benefit pension fund is in deficit. Under the scheme, the scheme trustees can pay a sum to the Exchequer to cover the cost of paying the pensions of retired members, instead of buying annuities.  Savings will then be put towards the pensions of those yet to retire, thereby reducing, to some extent, pension shortfalls. PIPS is intended to be cost neutral from an Exchequer point of view.”
 
The Society welcomed this initiative, having made a submission to Government on the matter, followed up by further research.
 
The legislation giving effect to the Scheme has now been issued along with an explanatory note and is attached below.
 
Further information and an application form for participation in the Scheme are available on the Pensions Board’s website at http://www.pensionsboard.ie/index.asp?locID=3&docID=656.