Pensions board obtains order against construction company

The Pensions Board has successfully taken a case to the High Court, applying for an order directing an employer to pay arrears of contributions to a pension scheme.

Today Miss Justice Laffoy gave judgment to the Board directing Limestone Construction Ltd (“Limestone”) to pay arrears of contributions amounting to €186,825 to the Construction Workers’ Pension Scheme (CWPS). Limestone’s registered office is at 2 Kilreesk Lane, St Margaret’s, Co. Dublin.

Arising out of a complaint that Limestone had failed to remit pension contributions deducted from its employees the Board launched an investigation to ascertain the position.

On October 17 2007, authorised officers of the Board conducted an unannounced on-site visit of Limestone’s business premises to investigate its participation in CWPS. The Board was accompanied by members of the Gardai and also had a warrant issued by the District Court. As a result of the site visit the Board had reason to seize computer equipment and payroll records and had these analysed by forensic accountants against the membership and remittance records held by CWPS.

The Board discovered that Limestone had been deducting pension contributions from the wages of nearly 200 employees over the period of 14 months, but had not paid these to CWPS. In addition, Limestone had failed to make employer contributions. The Board ascertained that approximately €186,000 of employer and employee contributions is owed. Limestone is now required to forthwith pay these arrears of contributions due to CWPS.

Commenting on the judgment, the CEO of the Pensions Board, Brendan Kennedy, said: “The importance of the judgment obtained today cannot be underestimated. Failure to pay contributions to a scheme jeopardises the future retirement income of members and their dependants and that is a situation that will not be tolerated by the Board. The Board in the first instance will try to secure compliance with the Pensions Act on a voluntary basis.

"Where this does not happen, the Board will not hesitate to pursue any party who takes money out of the pay packet of any worker and fails to remit that money to a pension scheme on their behalf. The Board will use its best endeavours to ensure that the arrears in this case are paid as rapidly as possible including, in so far as is necessary or appropriate, making further applications to the High Court to enforce the judgment against Limestone."