Pensions Board targets firms

THE prosecution by the Pensions Board of six companies for non-compliance with pension regulations is at an advanced stage.

The process was triggered as a direct result of whistle blowers contacting the Board since personal pensions plans were introduced in February of this year.

So far just under 35,000 people have taken out PRSAs and up to 50% of workers still have no pension coverage.

In a further move to enforce compliance with pension regulations, up to 64,000 employers have been written to by the Pensions Board.

That’s the number who have failed to register a pension plan for employees with the board.

Letters and questionnaires have been sent to the defaulters.

Those who failed to register an Occupational Pension Scheme or who appear not to have signed up for a Personal Retirement Savings Account (PRSA) have been asked to account for themselves, the Pensions Board said.

Head of PRSAs at the Pensions Board, Philip Dalton said the letters had been dispatched as part of the board’s statutory responsibilities. “We have written to employers to determine if they are breaking the law,” said Mr Dalton.

Under the law all employers were required by September 15, 2003, to have entered a contract with a PRSA provider, he said.

Such a contract would enable all workers to have access to a pension plan if they wanted to sign up for one.

In particular the key area of concern for the Pensions Board is among small employers.

Employers engaged in services, hospitality, retail and farming with a high part-time and seasonal element need to be monitored carefully, because of their bad track record in pension provision.

Employers who have been contacted have been asked five questions.

Their responses will show whether or not they are compliant.

Employers were already warned they faced criminal prosecutions and stiff fines under the law of non compliance.

In September 2003, the Board adopted a PRSA Compliance Strategy which sets out procedures for dealing with ‘whistleblow’ reports received by the board.

It is also under this strategy that the board is carrying out random and targeted monitoring of employers who do not have occupational pension schemes registered with the board and who have not designated a PRSA provider for their employees.

Keeping track of non compliant companies has been given top priority by the Board.

The entire process is due to come up for review after three years.