Firms prosecuted over pension info

THREE Irish firms have been prosecuted for failing to comply with the Pensions Board requests for information in relation to the companies’ PRSA obligations.

However, the board could not confirm the companies in question have failed to make pensions available to their respective workers, despite the successful outcome in the courts.

"We have no comment to make on whether they do or not," a spokesman said.

The three companies prosecuted were: The Alternative Bread Company, South Douglas Road, Cork; Lally Coach Hire, Spiddal, Co Galway and Pepsi Cola Trading Ireland, Herbert Street, Dublin 2.

A fine of €250 was imposed on The Alternative Bread Company and costs of €2,400 plus VAT were awarded to the Pensions Board.

Lally Coach Hire was fined €750 and the board was awarded costs of €2,400 plus VAT.

Pepsi was given the Probation Act while the District court adjourned the case brought against a further company Superwash Launderette until 10 October 2005.

Pensions Board chief executive Anne Maher said that by September 15, 2003 all employers were required to have contracted a PRSA provider to allow access to at least one Standard PRSA to all relevant workers.

This is a key plank in the board's drive to increase private pension coverage in Ireland, she said.

"The board has a responsibility to enforce this mandatory access requirement and regards non-compliance as a serious matter."

A PRSA is a personal pension plan where the contributions paid are tax deductible and the investment return is tax exempted. There are two types of PRSA a standard PRSA and a non-standard PRSA.

To date, take up of the plans has been pretty slow and the board's aim of getting 70% of all workers on to a private retirement plan within a few years is under severe pressure.

At present just 50% of workers have private pensions to fall back on and the board's mandate to push that figure up closer to 70% is proving very difficult.

Under the current laws the state can make it mandatory for all firms to supply their workers with access to a private pension plan.

At present over 59% of those over 30 have a private pension plan and while the figures is just 52.4% for those aged between 20 and 69.

The board confirmed last night a number of further prosecutions are pending.