Pension whistle–blowers increases by 200%

THE number of whistle-blowers spilling the beans on employers evading workers' pension contributions has increased by almost 200%, figures released yesterday by the Pensions Board reveal.

The report shows the board received 15 ‘whistle-blow’ reports in 2002 but board chief executive Anne Maher disclosed that 17 reports have already been received this year.

Ms Maher said the complaints relate to employers who are failing to make the required pension contributions because of the deteriorating business environment.

She made the comments as the Pensions Board presented its 2002 Annual Report to the Minister for Social and Family Affairs, Mary Coughlan.

“The board remains satisfied that the whistle-blowing provisions are working well and are pleased that

action was able to be taken which protected the members’ interests in a substantial number of the cases,” she said.

Legal protection is given to pensions related whistle-blowing, which places a legal mandatory requirement on a range of professionals including auditors, actuaries, trustees, insurance intermediaries, investment advisers and any other person who has been involved in assisting a pension scheme to report suspected wrong-doing.

The board initiated three prosecutions in 2002 and convictions were secured in each case according to Ms Maher.

Pensions Board chairwoman Gráinne Clohessy said: “Ireland still enjoys a robust and successful pension system. The total number of current schemes at the end of 2002 was 107,764 with an active membership of 709,332. These figures reflect an overall increase in schemes of 10% and an overall increase in membership of 6% from the end of 2001.”

The Annual Report confirmed that there are two people in Defined Benefit pension schemes to every one person in Defined Contribution schemes. Overall, 66.5% of pension scheme membership was on a Defined Benefit basis in 2002 compared to 68% in 2001 but within the private sector the membership of Defined Benefit schemes is now less than that of Defined Contribution schemes.

Ms Maher said 70% of Defined Benefit schemes surveyed by the board in 2002 remain open to new members.

In 2002 the board also assumed the role of regulator of the recently introduced PRSAs, which form a key element of the national objective to increase supplementary pension cover amongst the workforce from its current level of 50% towards a target of 70%.

“The board is taking note on how the PRSA product and its surrounding processes might be improved,” she said.